MINEX Forum

Tag: lithium

  • Europe Accelerates Lithium Strategy to Reduce Dependence on China

    Europe Accelerates Lithium Strategy to Reduce Dependence on China

    Lithium is increasingly being treated as a strategic resource in Europe, prompting efforts to develop domestic mining and processing capacity and reduce reliance on China’s dominant position in global supply chains.

    China currently accounts for roughly two-thirds of global refined lithium production, a concentration that has raised geopolitical and industrial concerns within the European Union. With demand for lithium expected to grow significantly by 2030, driven by electric vehicles, energy storage and digital technologies, European policymakers are seeking to strengthen supply security.

    Mining companies are advancing lithium projects across several European countries, including Portugal, Germany and Serbia. Portugal’s Barroso project has been designated as “strategic” under the EU’s Critical Raw Materials Act (CRMA), with production potentially starting later this decade. However, the project has faced opposition from local communities and environmental groups.

    Serbia’s Jadar project, located outside the EU but of strategic interest to the bloc, is considered one of the most significant lithium developments in Europe. Industry estimates suggest it could supply a substantial share of regional demand, though progress has been delayed by political uncertainty and environmental concerns.

    Germany is also exploring lithium extraction from geothermal brine resources, which could offer a lower-impact alternative to conventional mining methods. Recent discoveries in Saxony-Anhalt have been described by analysts as potentially significant, though further validation is required.

    In parallel with mining development, European officials are considering broader policy measures, including the potential creation of strategic stockpiles of critical raw materials. The approach mirrors existing systems for oil and gas reserves.

    The Critical Raw Materials Act, adopted in 2024, is central to the EU’s strategy. The legislation aims to accelerate permitting and investment in projects deemed strategic, including mining, processing and recycling. A significant proportion of the projects identified under the framework involve lithium.

    Despite these efforts, industry experts note that Europe’s main challenge lies in building sufficient processing and refining capacity. Without this, domestically mined lithium may still need to be processed abroad, limiting the effectiveness of supply chain diversification.

    Recycling is expected to play an increasingly important role in meeting future demand, particularly as battery waste volumes grow.

    The push to secure lithium reflects broader concerns about supply chain resilience and industrial competitiveness. As global demand for battery materials continues to rise, Europe’s ability to develop a fully integrated lithium value chain will be a key factor in its energy transition and long-term economic strategy.

  • Core Lithium Secures $205M to Restart Finniss Project

    Core Lithium Secures $205M to Restart Finniss Project

    Australia’s Core Lithium has secured approximately $205 million in funding to fully finance the restart of its Finniss lithium project, with the company’s board approving a final investment decision to proceed.

    The funding package comprises a $70 million convertible note from Glencore’s Australian unit and InfraVia, a $50 million senior secured debt facility from Nebari, and an equity raising of A$120 million (approximately $85.3 million) before costs. The placement will be priced at A$0.21 per share, representing a 4.5% discount to the company’s previous closing price.

    Core Lithium stated that the financing will support construction activities and provide working capital during the ramp-up phase. The company is targeting first production of spodumene concentrate from the Finniss project in the September quarter.

    Additional liquidity is expected from a binding agreement signed in February with Glencore International AG for the sale of the project’s remaining spodumene concentrate stockpile at a price of $2023 per tonne. Proceeds from this sale are intended to support the restart and early-stage operations.

    The restart decision comes amid early indications of stabilisation in lithium markets following a prolonged period of price declines driven by weaker-than-expected electric vehicle demand and oversupply.

    Other producers have also signalled potential production increases. Pilbara Minerals has announced plans to restart output at its Western Australia operation, while Liontown Resources is reviewing a possible expansion of its Kathleen Valley project in anticipation of improved market conditions.

    Core Lithium’s decision reflects a broader trend among producers positioning for a potential recovery in lithium demand, particularly in battery and energy storage markets.

  • Vulcan Energy Secures First Lithium Production Licence for Lionheart Project in Germany

    Vulcan Energy Secures First Lithium Production Licence for Lionheart Project in Germany

    ASX-listed Vulcan Energy has secured a key regulatory milestone for its Lionheart project, receiving a lithium production licence in Germany’s Upper Rhine Valley Brine Field.

    The licence, granted in the state of Rhineland-Palatinate, is the first of its kind issued in the region. Known as LiThermEx, it covers Vulcan’s Insheim geothermal production area, where renewable heat and electricity are already being generated.

    The permit has been awarded for an initial six-year period, with the company planning to extend it in line with the project’s targeted 30-year operational life.

    ⚡ Lithium meets geothermal power
    Lionheart is not a typical mining project. It blends lithium extraction with geothermal energy production, creating a hybrid model where hot underground brines are used both to generate renewable energy and extract lithium.

    The project is designed to produce around 24000 tonnes per year of lithium hydroxide monohydrate — a key battery material used in electric vehicles — while simultaneously supplying electricity and heat to local communities.

    CEO Cris Moreno described the licence as a major step forward.

    “Securing the first lithium production licence within the Lionheart project marks another important milestone,” he said, adding that the project supports Europe’s ambition to build a fully domestic lithium supply chain powered by renewable energy.

    💶 De-risked and funded
    The licence further de-risks the project, which is already fully financed and under construction following a €2.2 billion funding package completed in December.

    Vulcan expects additional production licences to be granted across the broader project area as development progresses.

    🧭 Strategic timing
    With Europe racing to secure battery raw materials and reduce dependence on external suppliers, projects like Lionheart sit at the crossroads of energy transition and resource security.

    Production is currently targeted to begin in 2028 — when lithium demand is expected to be even more electrified, quite literally.

  • UK Launches First Commercial-Scale Lithium Plant in Cornwall to Strengthen Domestic Supply Chain

    UK Launches First Commercial-Scale Lithium Plant in Cornwall to Strengthen Domestic Supply Chain

    The United Kingdom has begun operations at its first commercial-scale lithium production facility, marking a significant step toward securing domestic supplies of critical minerals essential for electric vehicle batteries and energy storage.

    The plant, developed by Geothermal Engineering Ltd (GEL) in Redruth, Cornwall, will initially produce 100 tonnes of lithium annually, sufficient to supply approximately 2,000 electric vehicles. The company plans to expand production to 1,500 tonnes per year within the next few years and ultimately exceed 18,000 tonnes annually over the coming decade through an investment programme estimated at £640 million.

    Lithium extraction at the site relies on geothermal technology, with mineral-rich underground fluids used to recover the metal. GEL has also commissioned the UK’s first geothermal power plant to supply energy to the lithium operation, with surplus electricity to be sold to Octopus Energy.

    The project forms part of a broader push among Western countries to establish domestic critical mineral supply chains amid growing geopolitical concerns. China currently dominates lithium processing, accounting for around 60 percent of global production in 2025 and maintaining strong control over downstream battery supply chains.

    The UK government has set a target of producing 50,000 tonnes of lithium domestically by 2035, although market volatility following a sharp decline in lithium prices has delayed or reshaped several Western projects.

    GEL founder Ryan Law said geothermal integration enables the company to produce lithium competitively, adding that the operation could rival imports from China on cost.

    Other UK-based developers are progressing parallel initiatives. Cornish Lithium continues testing battery-grade lithium hydroxide samples from its demonstration plant and aims to commission a commercial facility by 2029, while Green Lithium has postponed its Teesside refinery start date to around 2029 under a phased development strategy.

    Industry analysts caution that European lithium projects must still prove cost competitiveness against established Asian supply chains. While lithium represents a relatively small share of total EV production costs, experts warn that building a fully Western-based battery supply chain could introduce higher costs at multiple stages.

    Additional challenges remain, including limited European cathode active material manufacturing capacity, which continues to link regional producers to Asian processing networks.

  • Sibanye Stillwater Reaffirms Battery Metals Strategy Despite Keliber Impairment

    Sibanye Stillwater Reaffirms Battery Metals Strategy Despite Keliber Impairment

    South African mining group Sibanye Stillwater remains committed to its battery metals strategy despite recording an additional 2.46 billion rand ($152.6 million) impairment on its Keliber lithium project in Finland, CEO Richard Stewart said during a results call.

    The company, which began in 2013 with three gold mines before expanding into platinum group metals, has in recent years diversified into lithium, nickel and zinc as part of a strategic shift toward metals used in renewable energy and decarbonization technologies.

    In 2025, Sibanye booked total impairments of 7.8 billion rand on Keliber, reflecting a weaker long-term price outlook for lithium hydroxide. The asset is currently valued at approximately 9 billion rand. Earlier in February 2025, the company also withdrew plans to invest in the Rhyolite Ridge lithium project in the United States after lithium prices declined sharply.

    Stewart said the group’s long-term strategy remains focused on supplying critical metals that support the global energy transition. At Keliber, Sibanye has opted for a phased production approach, beginning with spodumene concentrate while deferring potential production of battery-grade lithium hydroxide until market conditions improve.

    He added that policy initiatives by the European Union and the United States to reduce reliance on Chinese battery metals could improve the long-term pricing environment for projects such as Keliber.

    Financially, Sibanye reported headline earnings of 2.44 rand per share in 2025, compared with 0.64 rand the previous year. The improvement was driven by stronger commodity prices, including a 39% increase in the average rand gold price and a 28% rise in the average South African platinum group metals basket price.

    The stronger performance enabled the diversified miner to declare its first dividend since 2023.

  • France Takes Minority Stake in Imerys’ €1.8bn Emili Lithium Project

    France Takes Minority Stake in Imerys’ €1.8bn Emili Lithium Project

    France will invest €50 million in a minority stake in Imerys’ flagship Emili lithium project, marking a significant step in the country’s strategy to secure domestic battery raw materials.

    The investment, announced on Wednesday, will support feasibility studies ahead of a final investment decision. Production is currently targeted for 2030. Imerys CEO Alessandro Dazza said additional investors are expected to join the project as financing discussions progress.

    First unveiled in 2022, the Emili project aims to produce 34,000 tonnes of lithium hydroxide annually, enough to supply batteries for around 700,000 electric vehicles each year. The project involves developing an underground lithium mine beneath an existing kaolin site in central France, alongside a dedicated processing facility.

    Imerys has revised its total project cost estimate upward to €1.8 billion from an initial €1 billion forecast. However, Dazza indicated the final capital requirement is likely to come in significantly below the updated estimate.

    While the company may not retain a majority stake once new investors enter, Dazza stated that Imerys considers itself the natural operator of the future mine.

    The production timeline was pushed back from 2028 to 2030, partly due to public debate surrounding environmental concerns. The project is widely seen as a cornerstone of France’s efforts to reduce reliance on imported lithium and strengthen Europe’s battery supply chain.

  • Austria Extends Mining Licence for Wolfsberg Lithium Project, Boosting Development Certainty

    Austria Extends Mining Licence for Wolfsberg Lithium Project, Boosting Development Certainty

    A key regulatory step has been secured for the Wolfsberg lithium project in Austria, as national authorities granted a two-year extension to its mining licence, strengthening planning certainty for the project’s next development phases. The Wolfsberg project is linked to  and is located in the Carinthia region of southern Austria.

    The licence extension comes at a time of firmer lithium prices and heightened European efforts to secure domestic supplies of critical raw materials. While the regulatory approval provides a stable framework for continued project planning, the transition to production will still depend on external market and financing conditions.

    According to the company, the extended permit supports progress toward establishing a framework for a potential “Decision to Mine,” which is now targeted for completion by the end of 2026. However, any final investment decision will remain conditional on favourable lithium market pricing and the successful securing of project financing.

    Wolfsberg is considered a strategic asset for , which was formed following a business combination with European Lithium. The renewed licence is seen as a crucial enabler for advancing technical and commercial planning, though it does not remove the economic hurdles associated with bringing the project into production.

    The timing of the permit renewal aligns with broader European policy objectives aimed at strengthening raw material security. Wolfsberg is intended to produce spodumene concentrate for use in electric mobility and battery storage markets, in line with the EU’s push to localise supply chains under the .

    Alongside progress at Wolfsberg, European Lithium has recently taken steps to reinforce its corporate position, including divesting part of its stake in Critical Metals Corp. and announcing a diversification move through the planned acquisition of US-based Velta Holding, which owns titanium assets in Ukraine.

    For Wolfsberg, the next major milestone remains the targeted framework for a “Decision to Mine” by the end of 2026, provided market conditions and financing arrangements align.

  • A Strategic Assessment of Promise vs. Reality in Central Asia’s Mineral Development

    A Strategic Assessment of Promise vs. Reality in Central Asia’s Mineral Development

    Central Asia’s role in global critical minerals took a decisive turn at the 4 February 2026 Critical Minerals Ministerial in Washington, where officials from more than 50 countries acknowledged the region as a strategic hub rather than a geopolitical buffer.

    While Washington presented an ambitious framework to advance mineral sovereignty, analysts caution that the region—not the U.S.—must drive implementation to avoid becoming a passive arena for major‑power competition.

    U.S. Strategy: A Vertical Integration “New Order”

    The U.S. vision, centred on the FORGE initiative and the concept of “Pax Silica,” positions minerals and energy as shared strategic assets among trusted partners and offers an alternative to dependency on China.
    Washington differentiates its value proposition in three areas:

    1. Market Stability Through Price Floors
      Proposed tariff‑backed price floors aim to counter predatory market dumping and protect investments in assets such as Kazakhstan’s rare earth reserves.
    2. Vertical Value Integration
      The U.S. framework prioritises domestic processing and refining over raw‑ore exports, enabling Central Asian states to capture more value across the supply chain.
    3. Connectivity Autonomy
      By incorporating the Middle Corridor into initiatives like TRIPP, the West presents routes that bypass Russia and China, reducing geopolitical transit pressures.

    Kazakhstan and Uzbekistan have responded quickly—Kazakhstan has declared critical minerals the “new oil” and joined the Abraham Accords to strengthen supply‑chain integration, while Uzbekistan has pursued strategic MOUs to modernise mining and secure battery‑metal supply chains.

    Reality Check: Gaps Between Intent and Implementation

    Despite strong rhetoric, Western engagement has largely taken the form of frameworks and MoUs—not operational projects.

    Three challenges persist:

    • Operational Disparity – China continues to deliver turnkey, financed projects backed by contractors and long‑term offtake agreements, while Western partners emphasise declarations.
    • U.S. Inward Focus – Washington’s drive for techno‑economic sovereignty favours selective, de‑risked engagements rather than proactive industrial development in the region.
    • Execution Gaps – Uzbekistan’s $2.6bn program covering 76 projects illustrates regional ambition, but real progress requires partners capable of building at scale.

    Strategic Imperative: Central Asian Agency

    Experts argue that relying on future U.S. demand is a strategic mistake.
    To convert high‑level dialogue into economic gains, Central Asia must prioritise:

    1. Midstream Capabilities

    Refining and producing intermediary products offer higher margins and reduce reliance on long‑distance transport of low‑value raw ore.

    2. Direct Private‑Sector Engagement

    Regional firms should proactively present project‑ready opportunities to U.S. companies rather than depending on government‑to‑government frameworks.

    Conclusion

    The U.S. “New Order” provides Central Asia with a potential pathway to diversify away from Beijing and Moscow while improving price stability and long‑term sovereignty.
    But success hinges on regional execution. Astana and Tashkent must convert diplomatic signals into tangible midstream capacity—and do so quickly—to secure their strategic autonomy before the current window closes.

  • Germany Seeks Deeper Partnership With Australia on Critical Raw Materials

    Germany Seeks Deeper Partnership With Australia on Critical Raw Materials

    Germany is looking to strengthen its cooperation with Australia on the supply and development of critical raw materials, German Foreign Minister Johann Wadephul said on Thursday during an official visit to Canberra.

    Following talks with Australian Foreign Minister Penny Wong, Wadephul described Australia as a key partner for Germany in diversifying global supply chains. He highlighted the strategic importance of minerals extracted in Australia, particularly lithium, and said Berlin is keen to expand collaboration in the raw materials sector.

    Australia hosts some of the world’s most significant mineral resources, including the largest hard-rock lithium mine, located near the town of Greenbushes south of Perth. The site spans more than 2000 hectares and is responsible for roughly 20% of global lithium production. Lithium is a crucial component in lithium-ion batteries used in consumer electronics and electric vehicles.

    In addition to lithium, Australia holds substantial reserves of rare earth elements such as neodymium and terbium, which are essential for manufacturing permanent magnets used in electric motors and other advanced technologies.

    Wadephul acknowledged that closer cooperation in developing and exploiting mineral resources would require significant financial investment. He noted that extraction and processing of critical raw materials can be costly, but emphasised that Germany’s economy is particularly reliant on secure access to these resources.

  • Sibanye-Stillwater completes assessment of Keliber lithium project, confirms staged start-up plan

    Sibanye-Stillwater completes assessment of Keliber lithium project, confirms staged start-up plan

    Sibanye-Stillwater has completed a multidisciplinary assessment of its Keliber lithium project in Finland, confirming the project’s technical readiness and outlining a staged approach to commissioning amid current market conditions.

    The Keliber project is regarded as the European Union’s most advanced fully integrated lithium development, with planned production of around 15,000 tonnes per year of battery-grade lithium hydroxide monohydrate over a mine life exceeding 18 years. It is also one of the few lithium hydroxide refineries outside China and has been designated a strategic project under the EU’s Critical Raw Materials Act, reflecting its importance to the bloc’s battery supply chain.

    According to Sibanye-Stillwater, construction of the fully integrated mine, concentrator and refinery remains on track, with completion of the construction phase and cold commissioning expected in the first quarter of 2026. The total capital investment required to complete construction is estimated at approximately €783 million.

    Following the assessment, Sibanye-Stillwater and its strategic partner, Finnish Minerals Group, have agreed that a staged start-up represents the most prudent path forward. Under this approach, initial commissioning will focus on achieving operational readiness at the mining and concentrating stages before determining the timing for commissioning the refinery.

    The company said this phased strategy is intended to reduce ramp-up risks while preserving financial flexibility, allowing certain capital expenditures and refining ramp-up costs to be deferred depending on lithium market conditions. Finnish Minerals Group is preparing to contribute additional funding on a pro rata basis in line with its 20% equity stake to support the project through the ramp-up period.

    Sibanye-Stillwater CEO Richard Stewart said the agreed approach balances technical readiness with market realities, ensuring the project advances in a responsible and commercially disciplined manner while remaining positioned to supply locally produced lithium into the EU battery value chain.