IBU-tec secures key approval for LFP production plant in Germany
The German battery material specialist IBU-tec based in the state of Thuringa is making good progress with the construction of its LFP production facility in Bitterfeld-Wolfen. The supplier to VW battery subsidiary PowerCo has now received a key approval from the State Administration Office of Saxony-Anhalt, required to commence operations.
The German battery maker IBU-tec is currently constructing a new LFP production plant with a capacity of 15,000 tonnes at its site in Bitterfeld-Wolfen, scheduled to begin operations in 2028. A significant milestone was already celebrated in April with the topping-out ceremony for the new spray tower.
The plant is linked to the strategy of PowerCo, Volkswagen’s battery subsidiary that produces the unified cell. PowerCo SE has already secured the entire LPF plant’s production capacity for 10 years at pre-defined prices. For IBU-tec, this is expected to generate annual revenue in the mid- to high double-digit millions starting in 2028, in the profitable segment. During the transition phase, IBU-tec will begin producing LFP cathode material for PowerCo this year using existing facilities at its headquarters in Weimar, continuing until 2028.
IBU-tec has now received the necessary approval from the State Administration Office of Saxony-Anhalt for new operational buildings to establish the 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 achieves multiple milestones
IBU-tec states that it has already achieved several milestones in Bitterfeld-Wolfen over the past few months. These include the development of logistics infrastructure, the expansion of analytical capabilities, and the harmonisation of IT systems, all progressing according to the established timeline. The company has also commenced detailed engineering for the production facilities and erected the steel structure for a logistics hall with a storage capacity of approximately 2,000 pallets on the site. The interior construction is expected to be completed by the end of the year, with the trial operation of the spray tower scheduled for the end of Q4.
IBU-tec expects the new LFP production plant to become operational in early 2028. According to the company, IBU-tec will then be the only provider in Europe capable of producing LFP cathode material on an industrial scale. While PowerCo SE has already secured access to the full production output for ten years, IBU-tec also highlights other potential applications for the battery material, including stationary battery storage and certain areas of defence technology.