Loop Industries, Inc. announced that its joint venture, Infinite Loop Europe, has selected BASF Industriepark Lausitz in Schwarzheide, Germany, as the site for its inaugural European manufacturing facility.
Led by Reed – Société Générale Group, the project will be the second Infinite Loop™ facility globally and the first under Loop’s licensed technology model. This selection marks a major step in Loop’s global commercialization strategy, with the site expected to be operational by 2030.
The development follows the December 2024 technology license agreement and the formation of Infinite Loop Europe. Loop previously received a €10 million upfront license payment and expects to begin generating incremental engineering and license revenue during the development phase, commencing in 2026 as the project advances through engineering and permitting.
Infinite Loop Europe reflects Loop’s strategic licensing model, designed to accelerate the global rollout of its technology alongside well-capitalized institutional partners. The selection of Industriepark Lausitz reinforces the robustness of Loop’s technology within one of the world’s most rigorous regulatory environments.
A Significant Milestone in Loop’s Commercialization Strategy
- Capital-Light Deployment: This facility marks the first implementation of Loop’s capital-light licensing model in which Loop can scale globally without direct construction CAPEX.
- Validated Scalability & Strong Market Need: The facility will utilize Loop’s proprietary depolymerization technology to produce 70,000 metric tons per year of virgin-quality Loop™ PET made from 100% recycled content. By addressing a critical supply gap for food-grade and pharmaceutical applications in the European market, the project pairs technical reliability with a high-demand commercial opportunity.
- Blue-Chip Partnership: Integration within BASF’s Industriepark Lausitz provides access to world-class industrial infrastructure and operational expertise, while the partnership with Reed – Société Générale Group brings strong institutional capital support, reducing execution risk and accelerating commercialization.
- Supportive Regulatory Environment: The process avoids up to 5 tons of CO2 emissions per ton of PET produced compared to fossil-based alternatives. The facility is positioned to benefit from the European Commission’s 2025 pilot actions aimed at modernizing and strengthening the EU plastics recycling sector.
- Next Steps: Following site selection, the project moves into the engineering and permitting phase.
“Selecting the BASF-powered Industriepark Lausitz is the defining next step for Loop’s expansion into Europe,” said Adel Essaddam, COO of Loop Industries. ” This facility is a direct execution of our capital-light model, designed to efficiently scale our global footprint. Most importantly, this move triggers our next phase of value creation. Building on the €10 million upfront payment already received, Loop is set to begin generating incremental engineering and license revenue starting in 2026. By utilizing modular construction and our proven depolymerization technology, we are shortening timelines and establishing a profitable, scalable hub for the European circular economy.”
