Oil and gas company Galp and battery manufacturer Northvolt have announced a partnership to build what they claim is Europe’s largest lithium processing plant in Portugal.
Northvolt. Credit: Peter Lundgren / Shutterstock
Credit: Peter Lundgren / Shutterstock
The two companies have set up a joint venture they named Aurora that aims to become a stepping stone for the development of an integrated lithium battery value chain aligned with European ambitions.
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The project will be a 50/50 joint venture, with a total investment of up to €700m, potentially creating over 1,500 jobs within the region. The project will target the annual production of 35,000 tonnes of battery-grade lithium hydroxide, enough for 50GWh of battery capacity.
“This is a once-in-a-generation opportunity to reposition Europe as a leader in an industry that will be vital to bringing down global CO2 emissions,” said Galp’s chief executive Andy Brown.
The plant will use a proven conversion process, leveraging recent process improvements and technologies to increase sustainability and efficiency. Additionally, the JV is seeking to enable the use of green energy to power the conversion process, thereby minimising and eventually avoiding reliance on natural gas as is the conventional approach.
“This joint venture represents a major investment into this area and will position Europe with not only a path to the domestic supply of key materials required in the manufacturing of batteries, but the opportunity to set a new standard for sustainability in raw materials sourcing,” said Paolo Cerruti, chief operating officer of Northvolt.
Mining Technology server reported that according to the IEA, demand for lithium is expected to skyrocket by 2040, growing by as much as 4,000%.
Currently, 60% of the world’s lithium is mined in China, which has led European companies to refocus their efforts to secure a greater market share of lithium production.
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Portugal, the site of western Europe’s largest lithium deposits, hopes to use its mineral deposits to build an “end-to-end lithium chain” to supply the electric vehicle industry in Europe, which at present imports almost all its battery-grade lithium from outside the EU.
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