Finnish chemicals company Kemira has started pilot production of iron phosphate at its facility in Helsingborg, Sweden, advancing development of a key precursor used in lithium iron phosphate batteries as Europe works to strengthen domestic battery-material supply chains. The Helsingborg pilot facility is intended to produce larger quantities of iron phosphate for customer qualification and process testing, while generating operating data that could support a future commercial-scale production plant.
Iron phosphate is a precursor used to manufacture lithium iron phosphate (LFP) cathode active material. Kemira said it aims to become one of the first European producers focused on supplying Western markets with iron phosphate. A decision on a larger investment will depend on the outcome of customer qualification, commercial demand and the performance of the pilot process.
Europe has expanded investment in battery-cell manufacturing, but significant parts of the upstream and midstream supply chain remain dependent on imported processed materials and chemical precursors. The dependency is particularly relevant to LFP battery chemistry, where China has a dominant position in cathode-material production and several intermediate processing stages.
LFP batteries have increased their share of the electric-vehicle and stationary-storage markets. The chemistry generally uses less expensive raw materials than nickel-rich alternatives and does not require nickel or cobalt. Demand for LFP cells is also increasing in grid-scale energy storage, particularly in applications where cost, cycle life and safety have greater importance than maximum energy density.
This leaves Europe facing a supply-chain challenge beyond battery-cell assembly, including the development of domestic production capacity for precursors, cathode active materials and other intermediate products.
Kemira’s Helsingborg pilot is positioned within this part of the battery-material supply chain. The development also complements other planned European LFP investments targeting industrial-scale production of cathode active material. A domestic source of iron phosphate could reduce European reliance on imported precursor materials while providing cathode producers with greater control over quality, traceability and logistics. The economics of future production will nevertheless depend on the ability of European facilities to compete on cost. Chinese producers benefit from large-scale, integrated supply chains and established processing capacity, while European projects face higher energy, labour and capital costs.
Long-term customer commitments are therefore expected to be important in determining whether future commercial production capacity can be financed. Kemira’s next stage will be to assess whether customer testing generates sufficient binding demand to support a full-scale investment at Helsingborg. If commercial capacity follows, the site could become part of a wider European battery-material supply chain connecting precursor production with emerging LFP cathode and battery-cell manufacturing.
