REUTERS/Dado Ruvic/Illustration/File Photo Purchase Licensing Rights LISBON, Oct 28 (Reuters) - Portuguese energy company Galp (GALP.LS) is in no rush to make a final investment decision (FID) to build a battery-grade lithium refinery in Portugal amid challenging market conditions, CEO Filipe Silva said on Monday.
Plans are in place to invest about 500 million and start production at the end of 2020. However, because Portugal is positioned strongly in the lithium market, is necessary to conduct more surveys, which is something in the Portuguese Socialist government’s agenda.
Portugal already produces lithium, which is for now only for the ceramics industry, and has active mines which do not produce enough volume to supply the factories producing batteries. The price of the raw material for ceramics is relatively low, so there will come a time when it is no longer economical to depend on farms.
The joint venture is also exploring funding options to support the project's development. Aurora aims to build Europe's largest sustainable lithium plant in Portugal, producing 35,000 tons annually by 2026, supporting the battery value chain and energy transition efforts.
In addition to the Savannah Resources, several foreign companies have shown great interest in the Portuguese lithium, as the Australian Fortescue, which this year presented two dozen prospecting requests, or Dakota Minerals, which has even decided to adapt its name from the Portuguese and exchange it to "New Lithium".
Given that Portugal receives significant benefits from membership in the EU, some of the goals that require lithium, such as clean mobility, economy decarbonization and digital technologies, the question remains as to whether Portugal does not have some obligation to develop lithium mines, since it has the largest reserves in Europe.
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