Infinity inks key MOU on the way to establishing the EU’s first lithium chemical plant
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Special Report: The EU wants to establish fully integrated domestic electric vehicle supply chains — from producing EVs all the way back to mining raw materials, like lithium and in particular the availability of battery grade lithium chemicals required to support the burgeoning EU auto industry.
This is a strategic move by European governments and automakers to reduce the reliance on other jurisdictions, like China, for battery grade lithium chemicals and other key EV inputs.
Infinity Lithium’s (ASX:INF) advanced San Jose project in Spain is a previously mined brownfields development which represents one of Europe’s largest lithium deposits.
Infinity plans to build Europe’s only mine-to-end-product lithium hydroxide operation to feed the large-scale battery plants currently under construction.
As part of a pre-feasibility study the development company has signed a key MOU with Spanish chemicals producer Ercros for the supply of major input reagents for producing lithium chemicals.
This is a big step, because reagents constitute about 25 per cent of the operating cost of lithium hydroxide production.
Ryan Parkin, managing director of Infinity, says the world class San Jose deposit provides a unique opportunity for Europe to maintain a competitive position and reduce dependence on other regions.
“Automakers have already announced they need to be able to maintain visibility of their entire supply chain, including mining and lithium chemical production,” he says.
” Through being strategically located in Spain with mining and processing lithium chemical activities on site, Infinity is in a unique position to limit transport and CO2 emissions,” he says.
“However, and similarly to automakers, we also need to be able to look at our own supply chain and make sure we limit our carbon footprint, hence our decision to source our reagents domestically.”