Chemical giant Süd-Chemie announced Monday it will build the world's largest lithium iron phosphate (LFP) production unit in Candiac, Canada. The German group will use a new production process to obtain the material, used in batteries for electric drive vehicles and electronic devices, among other applications. About US$ 75 million will be invested in the new plant, whose commercial production is planned to start in 2012.

Currently, Süd-Chemie uses the process at its unit in Moosburg, Germany, in a small-scale output. The company says the new process "has great potential in high-performance batteries", which face a booming demand specially among the automotive sector.