ICL to Build $400M Battery Materials Manufacturing Plant
ICL Group Ltd. ICL recently marked the official groundbreaking of its battery materials manufacturing plant in St. Louis, which will be the first large-scale lithium iron phosphate (LFP) plant in the United States. The $400 million plant, which is scheduled to be operational by 2025, will assist in addressing the growing demand for crucial battery materials produced and sourced in the United States from the energy storage, electric vehicle (EV) and clean-energy industries. The $197 million grant from the U.S. Department of Energy augmented ICL's investment in the plant.
The 140,000-square-foot facility, which will serve as the backbone for the company's global battery materials business, is likely to make 30,000 metric tons of LFP. The groundbreaking of the St. Louis facility of ICL is part of a manufacturing renaissance aimed at strengthening the country's supply chain for these clean energy products, the U.S. Secretary of Energy Jennifer M. Granholm said at the event.
The project is expected to create 800 to 900 union construction jobs, and ICL has appointed McCarthy Building Companies of St. Louis as the general contractor. ICL is additionally partnering with Aleees to establish a localized, integrated and sustainable LFP supply chain for customers in the United States.
Shares of ICL have lost 35.5% over the past year compared with 30.5% decline of its industry.
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Zacks Rank & Key Picks
ICL currently carries a Zacks Rank #4 (Sell).
Better-ranked stocks in the basic materials space include Carpenter Technology Corporation CRS, Bunge Limited BG and Veritiv Corporation VRTV.
Capenter Technology currently carries a Zacks Rank #1 (Strong Buy). The stock has rallied roughly 55.7% in the past year. CRS beat the Zacks Consensus Estimate in three of the last four quarters, while meeting in one. It delivered a trailing four-quarter earnings surprise of 9.8%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
Bunge currently carries a Zacks Rank #2 (Buy). The stock has gained roughly 12.5% in the past year. BG beat the Zacks Consensus Estimate in three of the last four quarters. It delivered a trailing four-quarter earnings surprise of 20.4%, on average.
Veritiv currently carries a Zacks Rank #2. The stock has rallied roughly 38% in the past year. VRTV beat the Zacks Consensus Estimate in three of the last four quarters. It delivered a trailing four-quarter earnings surprise of 6%, on average.
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