IBU-tec advanced materials AG announced continued progress in constructing its LFP battery material production facility in Bitterfeld, Germany, with logistics infrastructure and detailed engineering advancing on schedule. The facility, set to commence operations in 2028, will have an annual capacity of 15,000 tonnes, approximately five times IBU-tec's existing capacities.
The steel structure for a new logistics hall with storage capacity for about 1,800 pallets has been erected, with interior fit-out expected to be finalized over the next six months. Following the topping-out ceremony for a new state-of-the-art spray tower in April 2026, trial operations for the spray tower are scheduled to begin in Q4 2026.
These developments are part of agreements with PowerCo SE regarding process development, capacity expansion, and production of LFP cathode material, as announced in an ad hoc release dated October 6, 2025. PowerCo has contractually secured the entire production volume for a minimum period of ten years.
IBU-tec's facility is the first of its kind in Europe and a key building block in the development of a European battery value chain. It is based on a proprietary production process that does not rely on Chinese technology and is tailored to the European market. The battery material produced features a superior CO2 footprint, as the technology consumes only about half the energy compared to conventional processes from China.
Jörg Leinenbach, CEO of IBU-tec advanced materials AG, stated: "We are making good progress in building the large-scale production capacities for LFP battery materials in Bitterfeld. We are in close and constructive communication with PowerCo regarding the scheduled implementation of our timeline. In the coming months, we will achieve further milestones so that production can start as expected in 2028."
The expansion of analytics spectrum and harmonization of IT systems in Bitterfeld are also progressing according to schedule. For industry leaders, this development signals a strategic shift toward localizing battery supply chains in Europe, reducing dependence on Asian imports. The facility's proprietary process and energy efficiency could set new environmental standards for battery material production globally.
The facility's output will be critical for PowerCo's battery manufacturing, supporting the electric vehicle and energy storage markets. As Europe pushes for greater self-sufficiency in battery production, IBU-tec's progress represents a tangible step forward, with implications for supply chain resilience, technological sovereignty, and sustainability in the automotive and energy sectors.
