Lithium processing company Green Lithium has agreed terms with Trafigura that will support the development of one of the first centralised commercial lithium refineries in Europe.
The new refinery will supply European electric vehicle and battery manufacturers with battery-grade lithium chemicals. Under the newly-established relationship, Trafigura plans to supply lithium feedstock required for the planned UK-based refinery and invest equity in Green Lithium’s development phase funding round.
Trafigura is an established leading participant in the international nickel and cobalt trading markets. It continues to invest significant resources to diversify and develop its business across other battery metal commodities, strengthening its position as a leader in the global battery and electric vehicle value chain. Given the importance lithium plays in the supply chain – and, more broadly, in the transition to a decarbonised, greener economy – an agreement with Green Lithium represents a milestone for Trafigura’s international battery metals business.
It is forecast that the growing demand for battery-grade lithium chemicals will not be met by global refining capacity that is currently available or planned. Increasing and diversifying supply will be vital for the commercial viability of the European battery supply chain and, therefore, the electric vehicle revolution and transition to net zero.
Green Lithium is at the forefront of this transition. There is currently no commercial lithium refining capability in Europe, leaving the continent’s rapidly growing electric vehicle and sustainable energy storage sectors wholly reliant on China for critical battery metals. In delivering its lithium refinery, Green Lithium expects to create the missing link and guarantee upstream supply chain security.
Sean Sargent, Chief Executive Officer at Green Lithium, comments:
“The electric revolution is fundamental to reducing the carbon emissions that contribute to global climate change and ensuring net-zero targets can be met. Green Lithium’s refinery will accelerate the adoption of electric vehicles and sustainable energy storage through the increased supply of low-carbon, battery-grade lithium chemicals – a key component of lithium-ion batteries.
“Fulfilling this vision requires the right supply chain and investment partners. In Trafigura, we have found the perfect match in a company that not only has vast experience and expertise in the battery supply chain, but that is also willing to make a key equity investment to support Green Lithium in achieving its project objectives.”
Socrates Economou, Global Head of Battery Metals for Trafigura, comments:
“In addition to our core business in physical commodities trading and logistics, Trafigura has a strong track record of financing and investing in mining and metals projects globally. This landmark project has the potential to revolutionise the European supply chain for EV production and sustainable energy storage at this critical time in the energy transition.
“We’re looking forward to working with Green Lithium to support its development, as we continue to bring Trafigura’s global expertise to the fore in transforming the battery metals supply chain for a low-carbon future.”
Following its initial private funding round, securing over five times the target amount, Green Lithium is currently raising capital to fund its development phase activity.
Read the article online at: https://www.globalminingreview.com/mining/09052022/green-lithium-and-trafigura-agree-terms-for-supply-chain-relationship/