Finnish chemicals group Kemira has begun pilot production of iron phosphate at its Helsingborg facility in Sweden, targeting a key precursor for lithium iron phosphate batteries as Europe develops domestic battery-material supply chains.
The pilot will produce larger quantities of iron phosphate for customer qualification and process testing. It will also generate operating data that could be used to support the development of a future commercial-scale production plant.
Helsingborg pilot targets iron phosphate production
Iron phosphate is a precursor used in the production of lithium iron phosphate (LFP) cathode active material. Kemira aims to become one of the first European producers focused on supplying Western markets for iron phosphate. Any decision to proceed with larger-scale investment will depend on customer qualification, commercial demand and pilot-process performance. The Helsingborg development targets a segment of the battery supply chain between chemical production and cathode-material manufacturing.
European LFP supply chain remains import-dependent
Europe has made substantial investments in battery-cell manufacturing, while significant parts of the upstream and midstream supply chain continue to rely on imported processed materials and chemical precursors. The dependence is particularly pronounced in LFP battery chemistry, with China dominating production of LFP cathode materials and several intermediate processing stages. LFP batteries have increased their share of the electric-vehicle and stationary-storage markets. Their chemistry generally uses lower-cost raw materials than nickel-rich alternatives and does not require nickel or cobalt.
Demand extends into stationary storage
Expansion of grid-scale battery storage is also supporting demand for LFP cells, particularly for applications where cost, cycle life and safety carry greater importance than maximum energy density.
For Europe, developing a domestic battery industry therefore involves more than expanding cell-assembly capacity. The supply chain also requires domestic production of precursors, cathode active materials and other intermediate products. Kemira’s Helsingborg pilot is positioned within this part of the supply chain.
Commercial investment depends on customer demand
The Swedish project forms part of broader European investment in LFP materials, including developments targeting industrial-scale production of cathode active material. Domestic iron-phosphate production could reduce European reliance on imported precursor materials while providing cathode manufacturers with greater control over quality, traceability and logistics.
The commercial viability of future capacity will depend on production costs. Chinese producers benefit from established processing capacity and large integrated supply chains, while European projects face higher energy, labour and capital costs. Long-term customer commitments will therefore be important to financing potential commercial-scale production. Kemira’s next development stage will depend on whether customer testing generates sufficient binding demand to support a full-scale investment at Helsingborg.
