The Swedish mineral fertilizer producer Cinis Fertilizer announces that the company is prioritising the construction of a factory in Kentucky, the US, over the planned facility in Skellefteå, Sweden.
Initially, the Swedish company Cinis Fertilizer was planning to start fertilizer production in Skellefteå. However, the company has now decided to prioritise the construction of its planned facility in the US state of Kentucky over a facility in Northern Sweden.
Cinis Fertilizer is a Swedish green technology company aiming to produce fossil-free mineral fertilizer, potassium sulphate. This will be done by recycling industrial waste from the wood processing industry as well as from the production of electric car batteries.
In September, the Cinis Fertilizer entered into an agreement with Ascend Elements, an American manufacturer of battery materials. The agreement provides for the supply of sodium sulphate, a raw material for Cinis Fertilizer's production of environmentally friendly mineral fertilizer.
Ascend Elements is currently building its largest facility in Hopkinsville, Kentucky. Under the agreement with Cinis Fertilizer, Ascend Elements will deliver up to 240,000 tonnes of sodium sulphate annually to Cinis Fertilizer from 2024.
The fertilizer company has now decided to accelerate its expansion in the US. In order to enable the acceleration of production of 300,000 tonnes of potassium sulphate in Kentucky, parts of the planning of the company’s Skellefteå plant, with production of 200,000 tonnes of potassium sulphate, are pushed forward somewhat, the company writes.
As known, the Biden administration has launched the Inflation Reduction Act, which is a financial support package for American companies intended to accelerate the development of green industry in the United States.
The Swedish company is not the only one shifting its production from Europe to the US. Previously, it was revealed that the battery company Freyr would cut the costs at their battery venture in Mo i Rana, Northern Norway, in favour of an American venture - the construction of the Giga America factory in the state of Georgia. The reason, again, is the American support package for the green industry, the IRA.
The market for production of electric vehicle batteries is growing very fast in North America on the back of favourable government incentive programs introduced in the USA and Canada, thus many battery manufacturers are now shifting their focus from Europe to North America. Cinis Fertilizer wishes to take part in this growth and therefore we choose to focus on Hopkinsville as our second facility, says founder and CEO of Cinis Fertilizer in a press release.
Source: High North News