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Phostech Continues Operations Despite Negative Judgement of the Canadian Federal Court of Appeal

ST-BRUNO, QUEBEC — (Marketwire) — 08/18/11 — Despite a decision delivered on August 17th 2011 by the Canadian Federal Court of Appeal that a process used by Phostech Lithium at its plant of St-Bruno to manufacture the P1 grade of lithium iron phosphate (LFP), Canada, violated a patent of Valence Technology Inc. there is no significant impact on the business of Phostech Lithium.

As already released on July 27th 2011, Phostech is about to finalize the production capacity expansion for its new advanced grade LFP in St-Bruno. This new product with significantly improved performance is not affected by the decision of the Federal Court of Appeal.

“The decision of the Federal Court of Appeal is certainly disappointing, but as the P1 grade was scheduled for replacement by our new advanced grade anyway we don-t expect a significant impact on our business.” declared Christian Knobloch, General Manager of Phostech Lithium

Phostech-s 2,500 MT LIFE Power® P2 grade factory in Candiac, Canada, will start series production in January 2012. The production process of P2 is not subject to the procedures that led to the judgment of the Federal Court.

Phostech Lithium, a subsidiary of Sud-Chemie AG and part of the Clariant group, is a world leader in battery materials focusing primarily on research, development and manufacturing of lithium iron phosphate (LiFePO(4), LFP) – an innovative cathode material with excellent performance and superior safety profile which is expected to contribute to the breakthrough of the new generation of lithium ion batteries for stationary application and the automotive industry.

Contacts:
Phostech Lithium Inc.
Directeur Sales & Marketing
Michel Parent
+1-514-906-1359

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