MINEX Forum

Tag: Energy Transition

  • Portugal’s Battery Value Chain Receives Major Boost with Five Key Developments

    Portugal’s Battery Value Chain Receives Major Boost with Five Key Developments

    In a significant stride for Portugal’s battery value chain, five major developments have been announced in the past two weeks, marking a pivotal moment for the country’s role in the global energy transition and electric vehicle (EV) industry.

    1. CALB Group Co., Ltd., the world’s fourth-largest battery producer, has confirmed the Final Investment Decision (FID) for a battery gigafactory in Sines. The facility, set to begin construction this year, will initially produce 15 GWh and is expected to be operational by 2028.
    2. Savannah Resources PLC has resumed field work in its concession area in Boticas, advancing plans to start production at Europe’s largest lithium spodumene resource by 2027. The project, which currently employs 50 people (mostly locals), has received strong support from the Portuguese government, emphasizing its strategic importance for the region and Europe.
    3. Lifthium Energy has identified Estarreja as the preferred location for its lithium refinery, signaling significant progress. The company’s €35 million pilot plant and state-of-the-art R&D lab in Coimbra are nearing completion.
    4. DST Group, based in Braga, has partnered with CALB to collaborate on battery recycling and storage solutions, further strengthening Portugal’s position in the battery ecosystem.
    5. Portugal’s Battery Cluster (Battery Cluster Portugal), which includes all the above entities alongside 50 other organizations, has been officially recognized as one of the country’s four key Competitiveness Clusters for the 2024-2030 cycle.

    These developments come at a critical time, as the European Commission recently announced an urgent integrated industrial plan for the automotive sector, which is undergoing its largest transformation in over a century. The battery value chain is central to this transition, supporting nearly 15 million high-quality jobs across Europe.

    Despite challenges, these milestones highlight Portugal’s growing influence in the global battery market and its commitment to leveraging this opportunity for economic and environmental benefits.

  • Savannah Resources to Resume Drilling at Barroso Lithium Project After Suspension Lifted

    Savannah Resources to Resume Drilling at Barroso Lithium Project After Suspension Lifted

    Savannah Resources (LON: SAV) will immediately restart fieldwork and drilling at its Barroso lithium project in Portugal after the government lifted a temporary suspension order.

    The British company had paused work earlier this month following a precautionary injunction filed by landowners challenging the government’s approval for Savannah to access land it does not own. However, authorities issued a “reasoned resolution” stating that delays would be costly and harmful to the public interest, according to Savannah’s statement.

    Despite the news, Savannah’s stock fell 1.02% to £4.36 per share in London on Friday, giving the company a £95 million ($120 million) market capitalization.

    Barroso’s spodumene deposit is Europe’s largest, with recent prospecting results indicating it could exceed the previously estimated 28 million tonnes of high-grade lithium. However, the project has faced strong local opposition, including protests, legal battles, and refusals to sell land. Approximately 24% of the required land is privately owned, while 75% consists of common land (“baldios”).

    First Lithium Output in 2027

    Savannah aims to build four open-pit mines to supply lithium for 500,000 to 1 million electric vehicle batteries annually. The company is targeting first production by 2027.

    Once operational, Barroso is expected to produce 1.5 million tonnes annually over a 14-year mine life, based on a 20.5-million-tonne resource at 1.05% lithium oxide.

  • Zelenskyy Rejects US Proposal to Control 50% of Ukraine’s Critical Minerals

    Zelenskyy Rejects US Proposal to Control 50% of Ukraine’s Critical Minerals

    Ukrainian President Volodymyr Zelenskyy has reportedly rejected an initial proposal by the United States to secure 50% ownership of Ukraine’s critical minerals as part of a deal for continued military and economic aid in its ongoing war with Russia. According to three sources cited by Reuters, the US made the offer, which Zelenskyy did not outright dismiss but stated lacked the necessary security provisions required by Kyiv.

    Critical minerals, which include metals like cobalt, copper, lithium, and nickel, are essential for producing hi-tech products, green energy technologies, consumer electronics, artificial intelligence infrastructure, and weapons. These materials are in high demand due to the global push for energy transition and climate change mitigation. The International Energy Agency (IEA)estimates that the market for these minerals reached £320 billion in 2022, with demand expected to more than double by 2030 if countries meet their clean energy pledges.

    The term critical minerals is politically defined, with different countries prioritizing materials based on their national security, economic, and geopolitical goals. In 2022, the US Geological Survey (USGS) identified 50 minerals, including aluminium, zirconium, arsenic, beryllium, cobalt, lithium, graphite, indium, and tellurium, as vital for renewable energy, defense, and infrastructure development.

    The US proposal highlights the growing geopolitical competition for access to these resources, which are crucial for technological advancement and military capabilities.

  • Romania to Extend Operation of Coal Power Plants for Three Years

    Romania to Extend Operation of Coal Power Plants for Three Years

    The Romanian government has announced plans to extend the operational life of its coal-fired power plants by three years. Energy Minister Sebastian Burduja explained that this temporary measure is necessary due to delays in securing sufficient alternative facilities, particularly natural gas plants. Romania, committed to phasing out coal by 2032 under its National Recovery and Resilience Plan, has faced setbacks in replacing coal plants with gas and renewable energy. Efforts to replace the existing infrastructure, including the restructuring of CE Oltenia, have been delayed, causing the need for a short-term solution. The proposal for the extension will be submitted to the European Commission for approval. The delay in constructing new energy plants, such as the gas-fired units planned for Complexul Energetic Oltenia, has been a key factor in the decision.

  • Activist Investor Urges Rio Tinto to Scrap London Listing and Focus on Australia

    Activist Investor Urges Rio Tinto to Scrap London Listing and Focus on Australia

    Rio Tinto is under pressure from Palliser Capital, an activist investor, to abandon its primary London listing and adopt a sole focus on Australia, according to reports. The UK-based hedge fund, holding an estimated $250 million (£197 million) stake in the mining giant, criticized the firm’s dual listing structure across the London and Sydney markets as “outdated.”

    Palliser’s proposal mirrors the move by BHP, which shifted its primary listing to Sydney in 2022, citing strategic advantages. Australian investment firm Blackwattle Investment Partners has expressed support for Palliser’s call, suggesting alignment around a central listing in Sydney. However, under the proposal, Rio Tinto shares would remain traded in London under a secondary listing.

    This push comes as London’s financial markets face growing challenges, with several high-profile firms, including Tuiand Flutter, recently relocating their main listings overseas.

    Meanwhile, at its investment day in London, Rio Tinto outlined an ambitious plan for “a decade of profitable growth,” including projections for significant increases in copper production. The company aims to produce 780,000-850,000 tonnes of copper by 2025, up from this year’s estimated range of 660,000-720,000 tonnes, driven by strong performance at its Oyu Tolgoi mine in Mongolia. By 2030, the company targets annual production of 1 million tonnes of copper, a critical material for the global energy transition.

    Jakob Stausholm, Rio Tinto’s CEO, emphasized the company’s long-term strategy: “We are committed to becoming a global leader in energy transition materials. Our improved performance enables us to pursue growth, meet our decarbonization targets, and maintain our dividend policy while preserving a strong balance sheet.”

  • Romania Secures EUR 790 Million to Close Coal Mines in Jiu Valley

    Romania Secures EUR 790 Million to Close Coal Mines in Jiu Valley

    Romania has received EUR 790 million from the European Union to support the closure of four uncompetitive coal mines in the Jiu Valley, the country’s primary coal region. The European Commission approved the funding under EU state aid rules, ensuring it covers exceptional social and safety costs tied to the coal phaseout.

    The four mines—Lonea, Lupeni, Livezeni, and Vulcan—along with the Paroșeni power plant, are operated by Societatea Complexul Energetic Valea Jiului S.A. The financial package will support workers displaced by the closures and fund essential safety measures, including mine shaft security, environmental remediation, and land recultivation.

    Jiu Valley is part of the EU’s Coal Regions in Transition Initiative, launched in 2017. This funding aligns with Romania’s pledge to phase out coal by 2032 as per its National Recovery and Resilience Plan. However, recent analyses by Transelectrica, the national electricity transmission operator, suggest coal may vanish from Romania’s energy mix as early as 2026.

    The allocated funds will cover eligible costs from October 1, 2023, to December 31, 2032, and an independent consultant will ensure compliance, including limiting coal extraction to public safety needs. Romania has also committed to annual reporting to maintain transparency in the transition process.

  • German Industry Urged to Tackle Dependence on Imported Raw Materials

    German Industry Urged to Tackle Dependence on Imported Raw Materials

    According to the German industry association BDI, the country’s reliance on raw materials from abroad has reached unprecedented levels and must be addressed as a critical industrial policy priority. BDI head Siegfried Russwurm emphasized this point at a conference on resource security, noting that the dependence poses a dual risk for both decarbonisation and digitalisation. An analysis by the BDI revealed that a potential ban on lithium exports from China could jeopardize up to 115 billion euros in value creation in Germany, with the automotive sector facing losses of around 42 billion euros. Notably, China supplied about half of Germany’s lithium imports in 2024, a significant rise from just 18 percent in 2014, despite controlling only a fifth of the world’s proven lithium resources. Russwurm urged policymakers to proactively mitigate such risks, asserting that the current response time is insufficient. He argued that secure access to raw materials is imperative for national security, especially as autocratic governments leverage resources for political blackmail. Traditional market-based approaches are ineffective in this context, he added. To maintain a competitive edge in global supply chains, Germany and Europe must promptly pursue countermeasures, including domestic mining and processing projects, establishing international partnerships, and enhancing resource recovery rates through recycling. Russwurm highlighted that Germany has untapped potential in mineral resources, such as two significant lithium reserves, and the BDI plans to develop ten mines, 15 processing plants, and 15 recycling facilities by 2030. He reiterated the urgency of making decisive investments, as raw materials like cobalt, copper, and lithium are essential for energy transition technologies including electric vehicle batteries and wind turbines. A secure and sustainable supply of these crucial materials is vital for achieving Germany’s strategic energy and industrial policy goals and for transitioning to a climate-neutral economy.

  • Vulcan Energie Secures €100 Million for Geothermal Heating Project in Landau

    Vulcan Energie Secures €100 Million for Geothermal Heating Project in Landau

    Vulcan Energie has received up to €100 million in government funding to advance the HEAT4LANDAU project, which aims to decarbonize Landau’s district heating network with geothermal energy. Supported by Germany’s Federal Ministry for Economic Affairs and Climate Protection and the EU’s Recovery and Resilience Facility, the funding will finance infrastructure capable of generating 255 MW of geothermal power. The project includes expanding Vulcan’s geothermal plants in Landau and Insheim, with renewable energy expected as early as the 2024-2025 heating season. The initiative is part of Vulcan’s larger “Lionheart” phase, promoting sustainable district heating.

  • Belchatow Faces Uncertain Future as Europe’s Largest Coal Plant Prepares to Close

    Belchatow Faces Uncertain Future as Europe’s Largest Coal Plant Prepares to Close

    In Belchatow, Poland, the PGE coal-fired power plant, Europe’s largest and one of the world’s top polluters, has powered local industries and provided 20% of Poland’s electricity for decades. With EU-driven goals pushing its closure by 2036, the city of 55,000 braces for significant economic shifts. Efforts to retrain workers for “green collar” jobs and build renewable energy projects are underway, though residents worry about a lack of clarity on future job prospects. The transition’s impact is already visible: youth are increasingly leaving Belchatow, and a new wave of political support has emerged for Patryk Marjan, the city’s first far-right mayor, who campaigned against the EU’s Green Deal. Locals express concern over the region’s future, and some fear the city could lose its vitality and identity post-coal, with some joking it could become “churches and kebab shops.” The question remains whether Belchatow can secure an economically sustainable future in the clean energy era.

  • Rio Tinto Calls for New Mines to Meet Demand for Key Energy Metals

    Rio Tinto Calls for New Mines to Meet Demand for Key Energy Metals

    The world needs more mines to meet the growing demand for energy-transition metals such as copper, according to Rio Tinto Group chairman Dominic Barton. Speaking in a Bloomberg TV interview, Barton stated that mergers and acquisitions alone will not solve the impending supply gap. “As an industry, we’re not going to inorganic our way out of this challenge,” Barton said, referring to the industry’s reliance on deals for growth. He highlighted the need for new mining projects in at least five key commodity areas.

    While global mining mergers and acquisitions (M&A) have surged recently—driven by strong cash flows and the increasing demand for green energy metals—Barton emphasized that building new mines is essential. BHP Group has been one of the most active players, notably making a move on Filo after its $49-billion bid for Anglo American was rejected.

    Unlike BHP, Rio Tinto has remained relatively quiet in the M&A space, choosing instead to invest hundreds of millions into exploration, with a primary focus on copper and lithium. However, Barton confirmed that the company is still evaluating acquisition opportunities. “We’re just going to have to build more,” he said, stressing the urgent need to discover and mine more copper in the next 30 years.