1. Disproportionate focus on battery manufacturing, less on upstream material production and mining
2. Lifthium Energy aims to build a large lithium refining project in Portugal to convert lithium carbonate into lithium hydroxide for the European market
3. Europe and the US are working to reduce dependence on China in the lithium-ion battery production market and clean energy technology ecosystem.
Lithium Energy’s COO, Bernardo Gross, highlighted the lack of focus on the upstream material production and mining segment needed to supply lithium-ion batteries. Lifthium Energy is looking to build a large lithium refining project in Portugal to address this gap. The project aims to convert lithium carbonate into lithium hydroxide for the European market, with a target output capacity of 25,000 tonnes by 2027.
The total investment in the project is expected to be half a billion euros, with Lifthium Energy working with banks to structure project financing. The company is also looking for potential equity and industrial partners to support the project. Gross emphasized the importance of government support, such as grants or loans, to facilitate the development of the European battery ecosystem.
China currently dominates the lithium-ion battery production market, with over 90% market share in lithium refining. Europe and the US are working towards building their own battery and clean energy technology ecosystems to reduce dependence on China. Lifthium Energy aims to produce greener lithium hydroxide that is at least 50% less carbon-intensive than market standards, although it may cost more.
Overall, there is a growing need for investment in the upstream segment of the lithium supply chain to support the development of the European battery industry and reduce dependence on China.