German Lithium Plant Set to Turbocharge Supply for Europe's Electric Vehicle Manufacturers

Foreks - Vulcan Energy has announced that its new facility, currently in the pilot phase west of Frankfurt, plans to produce lithium for batteries used by automotive manufacturers such as Volkswagen, Renault, and Stellantis. Francis Wedin, a senior executive at Vulcan Energy, stated to AFP that the German refinery is “a really important part of Europe’s critical raw material independence.” For now, Europe’s lithium battery sector is struggling to establish itself during a period of slowing regional demand for electric vehicles. Vulcan Energy hopes to help revitalize Europe’s emerging industry that produces the silvery-white metal, a key component of lithium-ion batteries commonly used in electric vehicles. Commercial production is planned to start in 2027, with the process subsidized by the German government to the tune of 100 million euros ($106 million). As the 2035 deadline set by the European Union to gradually halt the sale of new internal combustion engine vehicles approaches, car manufacturers are racing to secure lithium supplies. The EU also aims to reduce its dependency on foreign countries, particularly China, which plays a dominant role in the mining and refining of many critical minerals essential for the transition to green energy.