Federal authorities, in conjunction with Rhineland-Palatinate and Hesse, are backing two crucial lithium extraction ventures in Germany for strategic purposes
The German Federal Government, alongside the federal states of Rhineland-Palatinate and Hesse, are jointly investing €103.6 million in two strategic lithium extraction projects as part of a push to secure a domestic and reliable supply of lithium raw materials for the European battery industry.
The projects, which are estimated to require total investments of around €690 million, are being carried out by German subsidiaries of Vulcan Energy Ressourcen GmbH as part of their "Clean Lithium for Battery Cell Production" (Li4BAT) initiative.
Lithium Chloride Extraction Plant in Landau, Rhineland-Palatinate
In Rhineland-Palatinate, a new type of lithium extraction plant will be built in Landau. This facility will extract lithium chloride from local geothermal brine, leveraging geothermal energy to reduce carbon emissions.
Rhineland-Palatinate Minister for Economic Affairs, Transport, Agriculture and Viticulture, Daniela Schmitt, stated that the state is making an important contribution to strengthening Germany as an industrial location with this lithium project. The Rhineland-Palatinate lithium project was approved by the EU Commission as a strategic project under the Critical Raw Materials Act in the EU.
Lithium Hydroxide Processing Plant in Frankfurt-Höchst, Hesse
In Hesse, a conversion plant will be built in Frankfurt-Höchst to process lithium chloride into lithium hydroxide monohydrate. This critical material for electric vehicle (EV) battery manufacturing will enable the supply for approximately 500,000 EV batteries annually.
Hesse's Minister of Economic Affairs, Kaweh Mansoori, emphasized the project's importance for greater independence, sustainability, and competitiveness in battery cell production. Climate-neutral lithium extraction from regional resources is an important building block for the mobility and energy transition in Hesse.
These projects are a step towards a secure and affordable supply of raw materials for the German economy, reducing dependency on imports mostly from China and South America. Vulcan Energy's CEO Cris Moreno highlighted the grants as enabling the provision of sustainable, locally sourced lithium for the European battery market.
Strategic Importance of Lithium
Lithium is a key component of high-performance batteries and is of great importance, particularly for the automotive industry. Since 2023, lithium has been on the list of the EU's strategically important raw materials. Global lithium production, especially its processing into battery-grade material, is concentrated in a few countries.
The funding for these projects is based on the funding guideline published by the Federal Ministry for Economic Affairs and Energy (BMWE) in 2023, "Resilience and Sustainability of the Battery Cell Manufacturing Ecosystem." This measure aims to promote capacity building along the battery value chain and support strategic investments to ensure a resilient lithium supply for European battery cell manufacturing.
The grants are contingent on Vulcan completing phase one financing and beginning construction by early 2026. These projects are part of the larger Lionheart Project, aiming to build a decarbonized, resilient raw materials supply chain for lithium in Europe.
[1] BMWi (2023). Resilience and Sustainability of the Battery Cell Manufacturing Ecosystem. Retrieved from https://www.bmwk.de/bmwi/de/themen/energie/aktuelle-themen/energiewende/batteriesysteme/resilienz-und-nachhaltigkeit-des-batteriezellherstellungs-okosystems.html
[2] Vulcan Energy Ressourcen GmbH. (n.d.). Li4BAT - Clean Lithium for Battery Cell Production. Retrieved from https://www.vulcanenergy.com/en/projects/li4bat/
[3] Bundesregierung (2023). Bundesregierung und Länder fördern zwei strategische Lithium-Auslagerungsprojekte in Deutschland. Retrieved from https://www.bundesregierung.de/breg-de/nachrichten/2023/03/2023-03-28-bundesregierung-und-laender-foerdern-zwei-strategische-lithium-auslagerungsprojekte-in-deutschland-1093544
[4] European Commission (2023). Strategic Projects under the Critical Raw Materials Act. Retrieved from https://ec.europa.eu/info/strategy/priorities-2020-2024/europe-fit-digital-age/critical-raw-materials/strategic-projects-critical-raw-materials-act_en
[5] European Commission (2021). EU list of critical raw materials. Retrieved from https://ec.europa.eu/growth/sectors/raw-materials/critical-raw-materials_en
Technology plays a pivotal role in the advanced extraction and processing of lithium, as the new lithium chloride extraction plant in Landau, Rhineland-Palatinate, utilizes geothermal energy, and the lithium hydroxide processing plant in Frankfurt-Höchst, Hesse, employs cutting-edge conversion techniques. This innovative application of technology is a significant step toward securing a sustainable, locally sourced supply of raw materials for the European battery market and enhancing the resilience and sustainability of the battery cell manufacturing ecosystem.
