| Project Detail |
The project concerns the construction of a commercial plant to produce lithium hydroxide from spodumene. Lithium hydroxide is one of key material used for electric vehicle (EV) batteries manufacturing. The annual production is expected to total 32 000 metric tons, enough to power over 700 000 EVs. The start of commercial operations is planned in 2028. The plant will be located in Setubal, Portugal.
Objectives
The global lithium processing capacity is highly concentred, creating a strategic dependency and potential bottleneck for the EU. The project will be amongst the first to establish a sustainable supply of lithium hydroxide in Europe, a key component in lithium-ion batteries needed for the green transition. The project supports the EUs CRM Act target to achieve the local processing capacity of at least 40% of the Unions annual consumption of strategic raw materials. Furthermore, the end-users use lithium hydroxide to manufacture EV batteries that play key role in enabling the EUs green transition and in achieving the European Green Deal ambition to become climate neutral by 2050. The project is deemed to be eligible under the Sustainable Energy and Natural Resources public policy goal and in line with Annex II of the EIBs Energy Lending Policy that identifies projects related to the supply of Critical Raw Materials needed for low-carbon technologies in the European Union. As such, it contributes to both the EU and the EIBs policies and lending priorities and is therefore eligible under Article 309 point (c), Common interest.
Sector(s)
Industry - Manufacturing
Proposed EIB finance (Approximate amount)
EUR 825 million
Total cost (Approximate amount)
EUR 1100 million |
