IBU-tec receives key approval for LFP production facility in Bitterfeld

Thuringia’s battery materials specialist IBU-tec is making good progress on building its LFP production facility in Bitterfeld-Wolfen. The supplier to VW’s battery subsidiary PowerCo has now received a crucial permit from the Saxony-Anhalt state administration, which is necessary to commence operations.

For context: IBU-tec is currently constructing a new LFP production plant with a capacity of 15,000 tons at its site in Bitterfeld-Wolfen, scheduled to go into operation by 2028. A significant milestone was reached in April when the foundation stone for the new spraying tower was laid.

This facility is part of PowerCo’s strategy, Volkswagen’s battery subsidiary that produces the well-known prismatic cell. PowerCo SE has already secured all production capacity of the LFP facility for 10 years at pre-defined prices. For IBU-tec, this is expected to generate medium to high double-digit million-euro annual revenues starting in 2028, within a profitable range. During the transition period, IBU-tec will begin producing LFP cathode material for PowerCo using existing facilities at its headquarters in Weimar from this year through 2028.

Specifically, IBU-tec has now received the necessary approval from the State Administrative Office of Saxony-Anhalt for new factory buildings to establish a production platform for battery materials at the Bitterfeld-Wolfen site. According to the company, the approved building complex also includes a new, state-of-the-art laboratory for battery materials made from various material combinations.

IBU-tec with Multiple Milestones

IBU-tec states that it has already achieved several milestones in Bitterfeld-Wolfen over the past few months. According to them, the development of logistics infrastructure, the expansion of analytical capabilities, and the harmonization of IT systems have progressed as planned. Additionally, detailed engineering work for the production facilities has begun, and steel construction for a logistics hall with a storage capacity of around 2,000 pallets has been carried out on site. The interior finishing is expected to be completed by the end of the year, with trial operations of the spraying tower scheduled for late Q4.

IBU-tec expects the new LFP production facility to become operational in early 2028. According to its own statements, IBU-tec will then be the only supplier in Europe capable of producing LFP cathode material on an industrial scale. Although PowerCo SE has secured access to full production for over a decade as mentioned, IBU-tec still points out other potential applications for this battery material: it could also be used in stationary battery storage systems and certain areas of defense technology.