Quick Takeaways
- Major regulatory approval unlocks a large-scale LFP cathode manufacturing project in Spain, strengthening Europe’s battery materials ecosystem.
- The investment signals accelerated momentum in EV supply chain localization and regional industrial growth.
On December 29, authorities in the Extremadura region granted environmental clearance for a new lithium iron phosphate battery cathode manufacturing facility to be developed at the Expaciomérida Business Park. The approval was issued by the General Directorate of Sustainability under the Ministry of Agriculture and Sustainable Development, marking a key regulatory milestone for the project.
Lithium Iron Phosphate Battery Cathode Manufacturing Gets Green Light
The lithium iron phosphate battery cathode plant will be developed by Yuneng International (Spain) New Energy Battery Material SLU on a site spanning 467,261 square meters. Once operational, the facility is designed to deliver an annual production capacity of 50,000 tons, strengthening Europe’s supply chain for battery materials used in electric mobility and energy storage.
Investment Scale and Industrial Footprint
The project has successfully completed all public information and consultation processes with relevant administrations and stakeholders. Construction of the lithium iron phosphate battery cathode facility represents an initial investment of EUR 116 million, underlining the company’s commitment to establishing long-term manufacturing capabilities in the region.
Key project highlights include:
Employment Impact and Long-Term Expansion Plans
Beyond industrial capacity, the plant is expected to generate significant employment opportunities. Around 160 direct jobs will be created during the initial phase, contributing to local economic development. Over the longer term, the broader project vision outlines a total investment of up to EUR 800 million and the potential creation of approximately 500 jobs as operations scale.
With environmental authorization secured, the lithium iron phosphate battery cathode project positions Extremadura as an emerging hub for advanced battery materials, supporting Europe’s transition toward electrification while reinforcing regional industrial growth.
Lithium Iron Phosphate Battery Cathode Manufacturing Gets Green Light
The lithium iron phosphate battery cathode plant will be developed by Yuneng International (Spain) New Energy Battery Material SLU on a site spanning 467,261 square meters. Once operational, the facility is designed to deliver an annual production capacity of 50,000 tons, strengthening Europe’s supply chain for battery materials used in electric mobility and energy storage.
Investment Scale and Industrial Footprint
The project has successfully completed all public information and consultation processes with relevant administrations and stakeholders. Construction of the lithium iron phosphate battery cathode facility represents an initial investment of EUR 116 million, underlining the company’s commitment to establishing long-term manufacturing capabilities in the region.
Key project highlights include:
- Total land area of 467,261 square meters
- Annual production capacity of 50,000 tons
- Initial construction investment of EUR 116 million
Employment Impact and Long-Term Expansion Plans
Beyond industrial capacity, the plant is expected to generate significant employment opportunities. Around 160 direct jobs will be created during the initial phase, contributing to local economic development. Over the longer term, the broader project vision outlines a total investment of up to EUR 800 million and the potential creation of approximately 500 jobs as operations scale.
With environmental authorization secured, the lithium iron phosphate battery cathode project positions Extremadura as an emerging hub for advanced battery materials, supporting Europe’s transition toward electrification while reinforcing regional industrial growth.
Company Press Release
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