IBU-tec Partners with Lanxess to Develop Electric Vehicle Battery Technology

Shares in IBU-tec Advanced Materials experienced a significant surge on Tuesday following the company's announcement of a partnership with Lanxess to develop electric-vehicle battery technology. As of 0834 GMT, shares in the German cathode manufacturer had climbed 14% to EUR16.08, reaching a peak of EUR16.26.

The collaboration between Lanxess and IBU-tec aims to enhance the performance of lithium-iron-phosphate (LFP) batteries that are widely used in electric vehicles. The goal is to make these batteries more powerful, longer-lasting, and faster to charge.

Additionally, the partnership will contribute to localizing the supply chain for Europe's electric vehicle and battery industries. Overreliance on China for supplies has prompted EU policymakers and trade groups to advocate for increased energy independence.

IBU-tec Chief Executive Joerg Leinenbach stated, "Through joint product development, we will leverage our expertise to drive the growth of the European LFP battery market and establish a self-sufficient value chain."

Lanxess highlighted the advantages of LFP batteries, such as their cost-effectiveness and reduced flammability, which have led more car manufacturers to adopt them for mass-market models.

Michael Ertl, head of inorganic pigments at Lanxess, emphasized the significance of partnering with IBU-tec, the only European manufacturer of LFP cathode materials. He stated, "This collaboration is an important contribution to sustainability and the development of a European value chain in the field of battery materials."