A coalition of European lithium producers is advocating for a mandatory threshold requiring car and battery manufacturers to source at least 20% of their lithium from either extraction or recycling within Europe. This measure is aimed at ensuring that companies benefiting from public aid or accessing the European market are contributing to the local supply chain. Despite this push, some industry players continue to favour imports, driven by immediate cost advantages. However, this approach overlooks the strategic risks associated with dependency on external sources, particularly in light of China’s dominance in lithium refining.
The current landscape leaves Europe vulnerable to potential supply disruptions and price volatility, as highlighted by the ongoing reliance on oil and gas. The experience gained from energy dependency should serve as a cautionary tale, underscoring the importance of establishing secure supply chains before crises arise. Furthermore, there is potential for Chinese companies to invest in and collaborate with European firms to bolster local production capabilities, which could mitigate some of these risks.
Stéphane Séjourné’s mobilization at the European Commission and the recent selection of strategic projects signal progress towards enhancing Europe’s lithium value chain. Support from Pierre Jouvet in the European Parliament for the proposed 20% threshold under the Industrial Accelerator Act reflects a growing consensus on the need for sovereignty in lithium production. However, this consensus must translate into actionable decisions to ensure timely financing and development of projects.
The urgency for action is underscored by the diverse applications of lithium beyond electric vehicles, including energy storage for renewable sources and military uses. As demand for lithium continues to rise, it is imperative that Europe builds its capabilities swiftly. The EMILI project by Imerys is one such initiative making strides, with recent public meetings in Beauvoir demonstrating strong local backing and a commitment to success. The ambitions and projects are in place, but the necessary conditions for their success must be established promptly.
