- The product is designed to have demand-driven properties at a competitive price, providing sustainable growth impetus through access to new markets.
- IBUvolt 402 expands the product portfolio with a material for standardized wet coating of battery electrodes.
- The company is confident in the product's success and expects to launch it in Q1 2024. There has already been significant interest from potential customers, positioning the company strongly in the future market of LFP battery materials.
- This market is expected to increase by around 17% annually to around USD 54 billion by 2035.
- IBU-tec is a leader in the field of electromobility with IBUvolt 402 and IBUvolt 400, both in wet coating and the new dry coating process. IBU-tec is confident that global automotive groups will adopt the new dry coating process starting in 2026.
- Battery materials are IBU-tec's key growth driver, with sales expected to multiply to EUR 30-60 million in the next two years.
Weimar, January 29, 2024 – IBU-tec advanced materials AG ("IBU-tec", ISIN: DE000A0XYHT5) will launch its new LFP battery product, IBUvolt 402, in Q1 2024 accelerating its future growth in the battery sector. IBUvolt 402 is a European LFP material with a CO2 footprint that is approximately 40% lower than the market average, currently dominated by Chinese suppliers. The new IBU-tec battery material has demand-driven product properties and a highly competitive price.
Expansion of the product range and positioning in the standard "wet coating" process
IBU-tec confidently expands its product range with the introduction of IBUvolt 402, a new material specifically designed for wet coating of battery electrodes. IBUvolt 402 is an excellent addition to the existing LFP battery materials IBUvolt 400 and IBUvolt 200. It is important to note that wet coating is currently the standard process for coating battery electrodes and is used by all major automotive companies worldwide. The market potential for the new product is significant. Many customers have already expressed interest in a low CO2 footprint European LFP battery material to IBU-tec, even before its launch.
Sustainable, stable supply chain through production "Made in Europe"
The new IBU-tec product, IBUvolt 402, is entirely produced in Europe, significantly contributing to an environmentally friendly value chain in the field of LFP production. Additionally, the production of IBUvolt 402 emits approximately 40% less CO2 per kilowatt hour of battery capacity than comparable materials from China. IBU-tec's in-depth know-how will optimize the production process, increasing CO2 savings to 50% in the near future. IBU-tec material saves around one ton of environmentally harmful CO2 per average electric car battery, resulting in a 7% improvement in the CO2 footprint of the entire vehicle. The production of the new IBU-tec product in Europe reduces dependence on countries like China and ensures supply chain stability by avoiding bottlenecks caused by global events.
IBU-tec strengthens its market position in the growth market LFP with IBUvolt 402
IBU-tec's introduction of IBUvolt 402 demonstrates our commitment to the fast-growing future market of LFP battery materials. LFP batteries are primarily used in electromobility and stationary energy storage due to their cost-effectiveness, durability, and sustainability compared to nickel-manganese-cobalt (NMC) batteries. Furthermore, LFP batteries are significantly safer than NMC batteries due to their thermal stability. LFP batteries have been greatly improved with recent technological advances making them comparable to NMC batteries. The market now offers LFP batteries with ranges of 700 to over 1,000 kilometers, and leading suppliers like CATL have significantly reduced charging times. It is clear that the use of LFP batteries in electromobility is rapidly increasing.
The market for LFP batteries is expected to grow from $12 billion in 2022 to around $54 billion in 2035, driven by rising global demand for electromobility and stationary energy storage. This corresponds to an impressive annual growth rate of 17%. LFP batteries are particularly suitable for stationary energy storage systems due to their high safety, price advantage, and high charging cycle stability.
IBU-tec now strongly positioned in the standard wet coating process and in the future market of dry coating
IBU-tec will dominate the mass market for wet coating of LFP batteries with IBUvolt 402. Furthermore, IBU-tec is the sole European supplier with a robust presence in the cutting-edge dry coating process, thanks to its existing product, IBUvolt 400. This process is currently undergoing testing by leading automotive companies worldwide. PowerCo, Volkswagen's battery manufacturing subsidiary, will be the first global automotive company to extensively use the dry coating process from 2026. Starting next year, PowerCo will dry-coat battery electrodes in plants located in Germany, Spain, and Canada in an environmentally friendly and cost-effective manner. Dry coating requires significantly less energy than wet coating, reduces space requirements, and eliminates the need for environmentally harmful solvents. PowerCo estimates that future dry coating for electrode coating will require 30% less energy and 15% less factory space, resulting in cost savings of hundreds of millions of euros per year in production. IBU-tec's IBUvolt 400 has been proven to be well-suited for dry coating by top automotive companies, as evidenced by their positive feedback after evaluating sample material.
In addition, IBU-tec is collaborating with well-known institutes to research future material combinations for batteries, including sodium-ion batteries. IBU-tec asserts its position as the first European producer to commercially manufacture layered oxides for innovative batteries.
The introduction of this new battery product confirms that battery materials will be a significant driver of the company's sales and earnings growth in the future. The Management Board is confident that the ambitious targets outlined in Strategy IBU2025, which aim for an annual revenue of 30-60 million euros with battery material by 2025, are achievable. IBU-tec's battery sales are expected to multiply in the coming years.
Jörg Leinenbach, CEO of IBU-tec: "Our new LFP product IBUvolt 402 fills a crucial gap in our product line, allowing us to address the large-volume mass market for standard electrode coating processes in LFP batteries. With IBUvolt 400, we are also well positioned for the future market of dry coating. Our presence in the LFP battery markets of today, tomorrow, and the future is now assured, making us a leading player in the industry. Our new product not only matches our competitors from the Far East in terms of quality and price, but also surpasses them significantly in terms of CO2 emissions. This is crucial in today's automotive industry, where environmental friendliness and sustainability are key competitive factors, especially in Europe and North America. Our commitment to our IBU2025 strategy remains unwavering."
Ulrich Weitz, founder of IBU-tec and Managing Director of IBUvolt battery materials: " The global LFP battery market has awakened from its slumber. The major automotive manufacturers as well as the leading producers of stationary energy storage systems have come to recognize the clear advantages of LFP battery materials. IBU-tec, as the only LFP manufacturer in Europe, is well-positioned in this growth market. Our high level of expertise and quality products meet current market needs and future requirements, making us a reliable choice. Leading suppliers are fully prepared for the introduction of the dry coating process, and our IBUvolt 402 battery product is at the forefront of this innovation.
The IBU-tec Group develops and produces innovative materials of the highest quality for industry. It combines unique, partly patented thermal process technology with the process and material know-how of around 250 highly qualified employees.
The company's own products include LFP battery material, which is an important component of batteries for electromobility and stationary energy storage, as well as solutions for air purification, resource conservation and the reduction of plastic packaging. IBU-tec is thus well positioned for the long term in global megatrends - especially climate and environmental protection - and has an international customer base ranging from innovative medium-sized companies to global corporations.
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