Munich, Germany – Candiac, Quebec will be the site of the first industrial production plant for lithium iron phosphate (LFP), a high-performance energy storage material used in electric vehicle batteries. Sud-Chemie AG, a specialty chemical company based in Munich, Germany, will invest €60 million in its wholly-owned Canadian subsidiary, Phostech Lithium Inc.

Commercial production for series delivery will begin in 2012 and will reach a rate of 2,500 tons per year, enough to produce approximately 50,000 all-electric vehicles or, alternatively, up to 500,000 vehicles with hybrid drive per year. The production capacity for LFP is expanding due to a new wet chemistry production process. The technology allows Sud-Chemie to currently manufacture up to 300 tons of LFP per year at its site in Moosburg, Germany. The company’s LFP is currently used in power tools, vehicle starter batteries, and electric scooters in Europe, Asia and North America.

The company said that its LFP has high energy density, superior safety, particularly long service life, favourable cost and excellent recycle stability, allowing reliable charging and discharging even in long-term use.

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