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ICL Inks MOU With Orbia Fluor & Energy Materials to Supply PCI3

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ICL Group Ltd. (ICL - Free Report) stated that it has signed a memorandum of understanding (MOU) with Orbia Fluor & Energy Materials (OF&EM) as both firms seek to increase their presence in the North American battery materials supply chain. The MOU establishes a framework for ICL's Industrial Products division to supply OF&EM with phosphorus trichloride (PCl3) for use in the production of LiPF6 - a vital raw material for lithium-ion batteries - at its proposed manufacturing plant in St. Gabriel, LA. 

ICL manufactures PCl3 at its facilities in Gallipolis Ferry, WV, and Bitterfeld, Germany. It is regarded as a major global supplier of this high-quality material required for this critical battery component.

This collaboration enables ICL and OF&EM to enhance electrification for both transportation and stationary applications, as well as start the manufacture of this important component in North America. It will also allow them to improve the performance, efficiency and safety of batteries for consumer devices, energy storage and other uses.

OF&EM’s expertise and leadership in fluorine technologies have made it an ideal partner for LiPF6 solutions, just as ICL's Phosphate Solutions division's competence in specialized phosphates assisted ICL in expanding into LFP battery materials in China and later the United States. In addition, this second expansion into the North American energy storage supply chain enabled ICL's battery materials operations to include its Industrial Products division.

ICL’s shares have lost 25% in the past year compared with a 19% decline in the industry.

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The company, on its second-quarter call, updated its full-year 2024 guidance. It projects specialties-driven earnings before interest, taxes, depreciation, and amortization of $0.8 billion to $1 billion compared with the previous guidance of $0.7 billion to $0.9 billion. The potash sales volume expectation remains unchanged in the range of 4.6-4.9 million metric tons.

Zacks Rank & Key Picks

ICL currently carries a Zacks Rank #3 (Hold).

Better-ranked stocks in the basic materials space include Carpenter Technology Corporation (CRS - Free Report) , Eldorado Gold Corporation (EGO - Free Report) and Hawkins, Inc. (HWKN - Free Report) . 

Carpenter Technology currently carries a Zacks Rank #1 (Strong Buy). CRS beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 15.9%. The company's shares have soared 111.7% in the past year. You can see the complete list of today's Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Eldorado’s current-year earnings is pegged at $1.40 per share, indicating a year-over-year rise of 145.6%. EGO, a Zacks Rank #1 stock, beat the consensus estimate in each of the last four quarters, with the average earnings surprise being 430.3%. The company's shares have rallied roughly 71.6% in the past year.

The Zacks Consensus Estimate for Hawkins’ current fiscal-year earnings is pegged at $4.14, indicating a rise of 15.3% from year-ago levels. The Zacks Consensus Estimate for HWKN’s current fiscal-year earnings has increased 12.8% in the past 60 days. HWKN, a Zacks Rank #2 (Buy) stock, has rallied around 99.1% in the past year.

 

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