Intel is reportedly investing $11bn by furthering its manufacturing activities in Israel
It has been revealed that one of the world’s leading producer of semiconductor chips, Intel, has issued a business plan to invest up to $11bn in a new advanced manufacturing plant in Israel, one of the largest investments the country has received.
Set to bring thousands of new jobs to the region, Intel has stated that the deal will subject to the Israeli state providing a 10% grant within this investment. It follows on from its plans last year to also invest up to $5bn in expanding its Kiryat Gat production plant, a facility. Through the deal, Intel is set to receive $190mn in government grants.
“Intel continues to demonstrate the strong performance of Intel Israel and we continue to lead in terms of corporate economic and social investment in Israel,” commented Daniel Benatar, General Manager of Intel’s manufacturing plant in Kiryat Gat. The business currently pays a corporate tax of 5%, which will remain unchanged.
The new manufacturing plant is set to extend to 90 acres, where the company is set to move away from producing silicon computer chips and more towards becoming increasingly data-centric, exploring new avenues such as drones, automotive vehicles and cloud technologies which will enable further opportunities to bolster ongoing financial revenue. At present, the company employs more than 11,000 people in Israel.
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"This is the largest investment ever made in the State of Israel," Finance Minister Moshe Kahlon said. “It indicates the great trust that the company has in the Israeli economy."
"Our continued confidence in Intel’s future and excellent partnership with the State of Israel is at the foundation of the business plan we will submit," said Yaniv Garty, Intel VP and Intel Israel general manager.
"This plan, when it comes to fruition, is expected to yield great economic and social value for Israel in general and for Kiryat Gat in particular."
The $11bn deal will be second only to Intel’s $15bn acquisition of automotive software business Mobileye in 2017, but will need approval from the Industry and Economy Ministry, as well as the Finance and Economy ministries and Tax Authority.
In addition to its manufacturing activities, Intel also has R&D centers situated in Jerusalem, Petah Tikva and Haifa. Intel’s exports from Israel reached $4 billion in 2018, according to Intel’s recent report.
Ultium Cells LLC/Li-Cycle: Sustainable Battery Manufacturing
Ultium Cells LLC - a joint venture between General Motors and LG Energy Solutions - has announced its latest collaboration with Li-Cycle. Joining forces the two have set ambitions to expand recycling in North America, recycling up to 100% of the scrap materials in battery cell manufacturing
What is Ultium Cells LLC?
Announcing their partnership in December 2019, General Motors (GM) and LG Energy Solutions established Ultium Cells LLC with a mission to “ensure excellence of Battery Cell Manufacturing through implementation of best practices from each company to contribute [to the] expansion of a Zero Emission propulsion on a global scale.”
Who is Li-Cycle?
Founded in 2016, Li-Cycle leverages innovative solutions to address emerging and urgent challenges around the world.
As the use of Lithium-ion rechargeable batteries in automotive, industrial energy storage, and consumer electronic applications rises, Li-Cycle believes that “the world needs improved technology and supply chain innovations to better recycle these batteries, while also meeting the rapidly growing demand for critical and scarce battery-grade materials.”
Why are Ultium Cells LLC and Li-Cycle join forces?
By joining forces to expand the recycling of scrap materials in battery cell manufacturing in North America, the new recycling process will allow Ultium Cells LLC to recycle cobalt, nickel, lithium, graphite, copper, manganese and aluminum.
“95% of these materials can be used in the production of new batteries or for adjacent industries,” says GM, who explains that the new hydrometallurgical process emits 30% less greenhouse gases (GHGs) than traditional processes, minimising the environmental impact. Use of this process will begin later in the year (2021).
"Our combined efforts with Ultium Cells will be instrumental in redirecting battery manufacturing scrap from landfills and returning a substantial amount of valuable battery-grade materials back into the battery supply chain. This partnership is a critical step forward in advancing our proven lithium-ion resource recovery technology as a more sustainable alternative to mining, " said Ajay Kochhar, President, CEO and co-founder of Li-Cycle.
"GM's zero-waste initiative aims to divert more than 90% of its manufacturing waste from landfills and incineration globally by 2025. Now, we're going to work closely with Ultium Cells and Li-Cycle to help the industry get even better use out of the materials,” added Ken Morris, Vice President of Electric and Autonomous Vehicles, GM.
Since 2013, GM has recycled or reused 100% of the battery packs it has received from customers, with most current GM EVs repaired with refurbished packs.
"We strive to make more with less waste and energy expended. This is a crucial step in improving the sustainability of our components and manufacturing processes,” concluded Thomas Gallagher, Chief Operating Officer, Ultium Cells LLC.