Infinity Lithium (ASX:INF) has surged +90 per cent after San José became the first lithium project to secure European funding.

The cash comes from EIT InnoEnergy, a public-private partnership supported by the EU Commission which leads the industrial stream of the European Battery Alliance.

The powerful European Battery Alliance (EBA) was formed in 2017 to create a competitive, fully integrated battery manufacturing chain in Europe.

It includes the European Commission, the European Investment Bank and key industry stakeholders such as automakers, battery and cathode producers.

The first phase of feasibility study test work on the flagship San José project in Spain will be funded by EIT InnoEnergy with an amount of up to €800,000 (about $1.35m) in Infinity through the issue of unlisted warrants priced at the higher of the 30-day volume weighted average price or 5c per share.

EIT InnoEnergy will then facilitate the funding for phase two — construction of the pilot plant — of up to €2.4m.

Most importantly, EIT InnoEnergy can help Infinity secure full project financing including both equity and debt.

EIT InnoEnergy has a strong track record here. So far, it has invested more than €700m in selected innovations and facilitated the raise of more than €1.7bn of funds.

“Our goal is to make this project a success and lead Infinity Lithium to support the European battery and automotive industry, by supplying lithium which can be produced locally, ethically and sustainably,” Thore Sekkenes, European Battery Alliance program director, industry says.

“We will provide support in obtaining necessary environmental approvals and societal acceptance, and secure Infinity Lithium’s strategic place in the European lithium-ion battery value chain.

“Our extensive network in this nascent industry will be used to advance and facilitate binding offtake agreements between Infinity Lithium and battery makers or automakers in the near future, and we have appointed a Spanish advisor within InnoEnergy who is already working together with Infinity Lithium.”

 

Talga’s (ASX:TLG)  flagship Vittangi project has now been demarcated as a “mineral deposit of national interest” by the Swedish Geological Survey.

Talga plans to be the first and largest battery anode producer in Europe.

Its vertically-integrated low-cost Vittangi graphite anode project in Sweden also has the potential to make big profits over its initial 22-year life.

This demarcation as a “mineral deposit of national interest” by the Swedish Geological Survey is important as the project moves toward financing and development.

Under the Swedish Environmental Code, deposits can be defined as being of national interest, meaning municipalities and central government agencies can’t authorise activities “that might prevent or significantly hinder exploitation of the mineral deposit”.

“They consider locally produced graphite could help strengthen the competitiveness of the Swedish battery manufacturing industry and that, as the known highest-grade graphite deposit in the world, Vittangi could meet a great need not only within Sweden but internationally,” Talga says.

“The decision takes note of the European Commission’s listing of graphite as a critical raw material and their warning that a lack of access to such critical commodities could slow the development of fossil-free energy sources.”

Talga was up 6 per cent to 41.5c per share in morning trade.

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