Mubasher Chaudhry's questions to ICL Group (ICL) leadership • Q1 2023
Question
Mubasher Chaudhry from Citi asked for the basis of management's confidence in a significant second-half volume recovery for Industrial Products, given the sharp Q1 decline. He also sought clarity on the cathode materials project, asking if the required CapEx would exceed the previously announced $400 million and inquiring about project returns and offtake agreements.
Answer
President and CEO Raviv Zoller attributed the confidence in a flame retardant market recovery to the cyclical nature of consumer electronics, long-term EV growth trends, and customer destocking data, noting that 70% of the business is under long-term contracts. Regarding cathode materials, Mr. Zoller confirmed that new opportunities with automakers mean ICL will likely build more than one plant, requiring investment beyond the initial $400 million. He explained these expansions will be developed in parallel with the first plant and are structured around offtake agreements with customers, with more specific details to be announced in the coming months.