It’s just the go-ahead but it’s a key go-ahead. It is what will allow Yuneng International Spain New Energy Battery Material SLU to launch a project in Mérida to produce lithium iron phosphate (LFP/LiFePO₄). In other words, Mérida will be key to producing essential materials for the manufacture of LFP batteries. Batteries that aspire to be essential in the popularization of the electric car.
Merida. It was the place chosen by Yuneng International Spain New Energy Battery Material SLU to build a factory that can produce lithium iron phosphate. The project will be located in the Expacio Mérida business park and will extend across 467,000 square meters after the Government of Extremadura has confirmed the approval of the environmental declaration for this factory.
The project aims to have financing of 800 million euros and generate 500 jobs to produce the planned capacity of 50,000 tons per year of these materials. In the first phase they will mobilize between 116 and 125 million euros of investment creating about 160 direct jobs, they point out in Motorpassion.
Why is it key? The production of lithium iron phosphate is essential for LFP batteries. Batteries are made up of modules and these, in turn, are made up of cells. In each cell there is an anode and a cathode. It is in the cathodes of LFP batteries where lithium iron phosphate sheets are located. Without them, the batteries would not work.
In batteries of this type there are small lithium particles on the anode (negative pole). These particles move to the cathode (positive pole) through a liquid electrolyte found inside. This is when the electric current is generated which is then used by the motors to move the wheels.
LFP Batteries. LFP batteries are one of the big promises of the electric car to make models cheaper and popularize this technology. It is a technology that offers less autonomy than NMC (cathode formed by nickel, cobalt and manganese) or NCA (nickel, cobalt and aluminum) because they have lower energy density.
However, these batteries are cheaper because lithium and iron are cheaper than nickel or cobalt. And, in addition, they are safer and better resist load cycles so they will be more durable. This is essential for smaller cars, which will have less autonomy and must undergo a greater number of charging cycles but with the backpack of not being able to raise its price.
Estremadura. In recent years, Extremadura has become relevant in the electric car supply chain. In addition to this lithium and iron phosphate production plant, in Navalmoral de la Mata (Cáceres) it is already rising a plant to produce complete batteries. This factory was designed to produce NMC batteries but has pivoted to produce LFP accumulatorsso both industries can be connected when the time comes.
Additionally, the region is rich in lithium. Next to Cáceres it is believed that there are one of the largest deposits in Europe. The mine that should exploit this deposit has encountered the opposition from some neighbors and environmental platforms which has paralyzed the project. However, up to three of the seven projects that the European Commission wants to carry out in Spain for the exploitation of minerals and rare earths They are in Extremadura.
The cheap electric car. To popularize the electric car, China has been betting on LFP batteries for years. In Europe, most electric cars have opted for batteries that include nickel or cobalt because they allow greater charging and discharging power and autonomy but are more expensive.
Over the years, this has changed. Renault works with LFP batteries for the entry-level range of electric cars such as the Twingo or the Renault 5 (in the future). Tesla also uses them in the more modest versions of Model 3 and Model Y. In Spain, CATL is going to manufacture this type of batteries in Zaragoza for the smaller Stellantis cars. And Volkswagen too has this type of accumulator in mind for its most affordable electric cars that will come out of the Martorell line.
Photo | Mercedes and Google Maps
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