MINEX Forum

Tag: lithium

  • Europe Moves Toward Lithium Independence with New German Refinery for EV Batteries

    Europe Moves Toward Lithium Independence with New German Refinery for EV Batteries

    As European automakers ramp up their pursuit of lithium for electric vehicle (EV) batteries, an Australian company is stepping in with a new refinery in Germany to help meet demand. Vulcan Energy has launched a pilot project at its plant west of Frankfurt to extract lithium from briny underground water near the French border. This lithium will be used by major auto manufacturers including Volkswagen, Renault, and Stellantis.

    In addition to producing lithium, the plant will use excess geothermal heat from water pumped from two kilometers below the Rhine Valley to warm homes in a local community. Francis Wedin, a senior executive at Vulcan, described the project as vital to Europe’s goal of reducing its reliance on foreign sources of critical materials. Currently, Europe’s lithium battery sector is struggling to gain a foothold as regional demand for EVs slows, but Vulcan hopes its plant will bolster Europe’s lithium industry and support the continent’s broader green transition.

    Set to begin commercial production by 2027, Vulcan’s project is partly funded by a 100 million euro ($106 million) subsidy from the German government. The EU, with its 2035 deadline to phase out new combustion engine vehicles, is eager to secure local lithium supplies to reduce dependency on China, a dominant player in global lithium mining and refining.

    Vulcan’s method involves drawing brine from geothermal reservoirs beneath Landau, where it’s processed into lithium hydroxide through electrolysis and crystallization. Notably, this approach has a carbon-neutral footprint and could be more cost-effective than China’s current methods. Vulcan’s Frankfurt facility aims to produce 24,000 tonnes of lithium hydroxide annually by 2027, enough for approximately 500,000 EV batteries.

    The EU has committed to refining 40% of its critical minerals domestically and has launched 28 lithium extraction or refining projects across the bloc. One competitor, AMG Lithium, opened a refinery in eastern Germany in September, sourcing raw materials from Brazil. Still, clean transport advocates warn that while securing lithium is critical, Europe needs further infrastructure to achieve full battery production independence.

  • UK Budget to Support Critical Mineral Imports to Strengthen Industry and Reduce Reliance on China

    UK Budget to Support Critical Mineral Imports to Strengthen Industry and Reduce Reliance on China

    The upcoming UK budget, spearheaded by Chancellor Rachel Reeves, will introduce greater financial support for companies importing essential minerals like lithium, graphite, and cobalt. These minerals are vital for sectors such as defense, aerospace, EVs, and renewables, and the initiative aims to reduce the UK’s dependence on China. Importers with long-term contracts with UK exporters can access UK Export Finance, enhancing partnerships with Commonwealth suppliers. This budget will also include broader economic measures, including tax adjustments and increased borrowing to boost public services and infrastructure.

  • Cornish Lithium to Launch £15m Demonstration Plant, Aims to Boost UK’s Clean Energy Transition

    Cornish Lithium to Launch £15m Demonstration Plant, Aims to Boost UK’s Clean Energy Transition

    A new lithium production demonstration plant is set to open in Cornwall, marking a significant step in the UK’s shift towards clean energy. Cornish Lithium announced that the £15m facility near St Austell will begin producing lithium hydroxide—a key component in electric vehicle (EV) batteries—from granite sourced from an old China clay pit. This initiative aims to reduce the UK’s reliance on importing carbon-intensive materials from countries like China.

    The unveiling ceremony will take place at the Trelavour Hard Rock project this Friday. The company plans to produce 10,000 tonnes of sustainable domestic lithium annually by 2027. According to CEO Jeremy Wrathall, lithium is essential for manufacturing EVs, grid-scale electricity storage, and rechargeable electronics. Currently, the UK imports 100% of its lithium, but by 2030, the demand is expected to reach 110,000 tonnes of lithium carbonate equivalent.

    Wrathall emphasized that Cornwall holds one of the largest lithium resources in Europe, with the potential to meet more than half of the UK’s EV industry needs. He noted that this resource is an untapped advantage, which could make UK industries more competitive and less vulnerable to global supply chain issues.

    The £15m demonstration plant was funded through the National Wealth Fund, alongside The Energy and Minerals Group, TechMet, and the UK Government’s Automotive Transformation Fund. Wrathall added that this project could benefit an area with a 4,000-year mining heritage and help tackle social deprivation. Business and Trade Secretary Jonathan Reynolds praised the project for supporting high-skilled jobs in the South West and bolstering the UK’s critical minerals supply chains.

  • Savannah Resources Predicts Lithium Price Rebound by 2027, Targets Production in Portugal

    Savannah Resources Predicts Lithium Price Rebound by 2027, Targets Production in Portugal

    Savannah Resources, a London-based mining company, anticipates a rebound in lithium prices by 2027, aligning with its plans to begin commercial production at its Barroso mining project in Portugal, according to CEO Emanuel Proenca. Lithium, a key material used in electric vehicle (EV) batteries and appliances, has seen an 80% price dropover the past year due to overproduction in China and a reduction in EV demand.

    Proenca emphasized that the market’s fundamentals remain strong, predicting a supply deficit from 2027 onward, which fits Savannah’s project timeline. He expressed optimism about global lithium demand, expecting it to grow 2.6 times over the next seven years, with a sharp acceleration starting in 2027.

    Savannah aims to bring the Barroso project online in 2027, delayed by a year due to a political change in Portugal. The company plans to build four open-pit mines in the northern Barroso region, extracting enough lithium for half a million EV batteries annually. Despite facing opposition from local residents and environmentalists, Proenca assured that the project would proceed.

    His optimism is echoed by Rio Tinto’s CEO, Jakob Stausholm, who recently announced the company’s acquisition of Arcadium Lithium for $6.7 billion, positioning Rio Tinto as a leading global player in lithium mining.

  • Germany May Turn to Its Own Lithium Deposits Amid Growing Interest

    Germany May Turn to Its Own Lithium Deposits Amid Growing Interest

    A growing discussion is emerging in Germany regarding the exploitation of its lithium deposits, particularly among media professionals and government circles. The question raised is why Germany should rely on Serbian lithium when it possesses its own deposits, allowing for greater control and profit. Notably, the country has vast lithium reserves, primarily located along the Rhine River near Insheim and Altenberg. Research is already underway at these sites, which are considered some of the largest in Europe.

    The delay in tapping these resources stems from concerns about environmental and safety risks. In Insheim, fears of earthquakes triggered by geothermal drilling have been a major obstacle. However, new hydrothermal methods, which use existing water pathways underground, are seen as a safer alternative. Another challenge is the carbon footprintassociated with lithium extraction, but Vulcan Energy Ltd has pioneered a process that extracts lithium with zero carbon emissions by using geothermal energy, as reported by Rob Schmitz of NPR.

    On the political front, German Chancellor Olaf Scholz recently visited the Altenberg site following a memorandum signed with Serbia. The Zinnwald Lithium mine, set to open in 2030, could supply lithium for up to 600,000 electric vehicles, offering a more self-reliant source for Germany’s electric vehicle industry. This shift toward domestic lithium could reduce Germany’s reliance on foreign sources, including Serbia, and secure more of the profit chain for itself.

  • Europe’s First Lithium Refinery Opens in Germany, Set to Power 500,000 Electric Cars Annually

    Europe’s First Lithium Refinery Opens in Germany, Set to Power 500,000 Electric Cars Annually

    AMG Lithium has opened Europe’s first lithium refinery in Bitterfeld-Wolfen, Germany, a significant step in boosting the continent’s electric vehicle (EV) industry. The refinery, built in just over two years at a cost of 140 million euros, will convert Brazilian lithium into battery-compatible lithium hydroxide. The plant is expected to produce 20,000 tonnes of lithium hydroxide annually, enough to power 500,000 electric vehicles.

    Lithium, a key component in EV battery production, is in high demand due to the global transition to green energy. To address this growing need, the European Union (EU) introduced the Critical Raw Materials Action Plan in 2020, aimed at reducing Europe’s reliance on external sources for these vital materials.

    Currently, most electric and hybrid vehicles rely on lithium-ion batteries, which are favored for their performance and range. Stefan Scherer, Managing Director of AMG Lithium, highlighted the importance of lithium-ion technology, stating, “If you want a certain performance and range when driving, then the lithium-ion battery is simply unbeatable.”

    In the future, lithium sourced from European mines—such as those in Portugal and the Ore Mountains—will also be processed at the Bitterfeld-Wolfen plant.

  • Kazakhstan Launches Lithium Recovery Facility Through Battery Recycling

    Kazakhstan Launches Lithium Recovery Facility Through Battery Recycling

    In Kazakhstan, while the industrial-scale extraction of lithium is not yet fully developed, the country has started obtaining this rare metal by recycling batteries. The first facility dedicated to extracting valuable components from lithium-ion batteries has been launched at the Industrial Place business park. This new production line has a capacity of processing at least 20 tons of raw material per month, according to a report from the Almaty Social Entrepreneurship Corporation (SPK). The facility was built by the company Technic Destroy.

    The facility employs a recycling technology designed to recover lithium-containing powder, aluminum, copper, and other metals from spent batteries. The SPK estimates that 1 ton of used batteries can yield up to 250 kg of lithium, reducing the need for raw material extraction. Battery recycling is said to produce 70-80% fewer emissions compared to primary lithium mining operations.

    At present, local companies in Kazakhstan are not directly engaged in lithium extraction. The country is actively inviting foreign investors into the rare metals and rare earth industries. Earlier this year, three German companies formed a consortium to develop lithium production in Kazakhstan.

  • Rio Tinto CEO Seeks to Reassure Serbian Locals Amid Lithium Mining Controversy

    Rio Tinto CEO Seeks to Reassure Serbian Locals Amid Lithium Mining Controversy

    The CEO of Anglo-Australian miner Rio Tinto, Jakob Stausholm, aimed to ease concerns during his visit to Serbiaon Saturday regarding the company’s controversial lithium mining project. Serbia boasts significant lithium reserves near the western town of Loznica, but the project has faced ongoing political and environmental opposition.

    Stausholm met with local residents in Ljubovija alongside Serbian President Aleksandar Vucic and promised to protect both the environment and the local population. “The biggest challenge for us is to win the trust of you who live here,” Stausholm said, emphasizing the company’s commitment to safety and environmental protection, including the safeguarding of water, soil, and natural habitats.

    President Vucic is on a five-day tour of the region where the mine would be located, engaging in discussions with local communities. He acknowledged the difficulty of the talks but expressed optimism for a productive dialogue.

    In July, Serbia’s top court overturned an earlier government decision that had halted the project following large-scale protests in 2021. This ruling reignited demonstrations across the country, with the largest in early August drawing tens of thousands to the streets of Belgrade, where key roads and train stations were blocked. Despite the ongoing unrest, the Serbian government signed a memorandum of understanding with the EU in July, marking the first step toward developing the country’s lithium resources.

  • Startups Innovate Direct Lithium Extraction to Meet Rising Demand and Enhance Sustainability

    Startups Innovate Direct Lithium Extraction to Meet Rising Demand and Enhance Sustainability

    As the global shift towards electrification accelerates, the demand for lithium—a crucial component in batteries powering everything from electric vehicles to smartphones—is expected to surge over the next decade. To address this growing need, a new wave of startups is developing innovative methods for producing the valuable metal, tapping into previously inaccessible lithium sources, and overcoming significant economic challenges amidst a current market downturn.

    One promising approach is Direct Lithium Extraction (DLE), which involves recovering lithium from brine found on the Earth’s surface or extracted from underground sources. Various techniques, such as using lithium-attracting beads or selective membranes, are being explored. Although DLE has been pursued by startups for years, recent advancements have brought the technology closer to being competitive with traditional extraction methods.

    “Sung Choi, a metals and mining specialist at BloombergNEF, noted that the technology is now on the brink of commercialization,” highlighting the potential for DLE to transform the lithium industry. Despite most startups still operating at the laboratory or pilot stage, the push towards high-value processing clusters and deep secondary metal processing is seen as essential for Kazakhstan’s metallurgical sector and the broader domestic steel industry.

    Traditional lithium extraction methods, such as open-air evaporation ponds and hard-rock mining, are water-intensive and environmentally taxing. In contrast, membrane separation technology, hailed as “the holy grail of lithium extraction,” offers a more sustainable alternative by significantly reducing water and chemical usage. Companies like SpecifX and ElectraLith are at the forefront of developing these advanced DLE techniques, which promise to minimize environmental impact while maintaining efficiency.

    However, economic hurdles persist. The recent collapse in lithium prices has created a challenging funding environment for DLE startups, as traditional methods remain cheaper in the short term. Despite this, industry leaders like Raef Sullyof Lilac Solutions Inc. advocate for continued investment in DLE to prepare for future demand spikes driven by the energy transition.

    As the industry navigates these challenges, the successful commercialization of DLE technologies could diversify the lithium supply chain, reduce environmental footprints, and ensure a steady supply of lithium to meet the demands of a rapidly electrifying world.

  • European Energy Metals Expands Exploration in Finland, Targeting Lithium-Rich Pegmatites

    European Energy Metals Expands Exploration in Finland, Targeting Lithium-Rich Pegmatites

    European Energy Metals (TSXV: FIN) has announced a significant expansion of its exploration efforts in Finland, applying for five new exploration licences (ELs) in the Kaustinen region. The applications cover an area of approximately 102 square kilometers, known for its high potential for lithium-cesium-tantalum (LCT) pegmatites. This expansion will increase the company’s total licensed holdings to 157.7 square kilometers, augmenting its existing Nabba and Nabba 2 licences.

    These newly applied licences are largely contiguous with those held by Sibanye-Stillwater at the Keliber project, which is renowned for its LCT spodumene-pegmatite deposits. Keliber’s resources are estimated at approximately 17 million tonnes, with a grade of 1% Li2O (lithium oxide). Sibanye-Stillwater, a South African mining group, is investing up to €600 million in partnership with the Finnish Minerals Group to build a comprehensive lithium supply chain complex in the area, with production expected to commence in the second half of 2025.

    European Energy Metals’ newly expanded concessions are strategically located within 1 kilometer of some of the known lithium-rich spodumene-pegmatite deposits at Keliber and Sibanye’s proposed spodumene concentrator plant. The company is currently conducting a field program on these concessions, following up on its successful 2023 exploration program. During that program, the team discovered multiple occurrences of lithium-bearing pegmatite mineralization, particularly at the Kyrola prospect, where rock chip grab samples returned assays of up to 3.84% Li2O.

    CEO Jeremy Poirier expressed optimism about the expanded exploration efforts, stating that the additional licences would allow for more thorough testing and definition of the subsurface mineralization identified on the surface. The 2024 exploration program is designed to advance these projects to a drill definition stage, with a focus on areas with significant proximity to known deposits and the soon-to-be operational lithium concentrator.