According to a media report, Saudi Arabia is planning a second lithium processing plant in which lithium hydroxide for bmw is to be produced. “Much of the world is afraid of what will happen if China would cease its exports,” said Tony Sage, Chief Executive Officer of European Lithium “Financial Times”
on Thursday. “That would be a catastrophe for the energy transition.”
European Lithium will supply the processing plant with lithium ore from its mine in southern Austria. Australian stock exchange-listed lithium start-up European Lithium and Saudi industrial conglomerate Obeikan Investment Group will each take a 50 percent stake in the facility, which will cost $350 million to $400 million, according to the Financial Times. From 2027, 9000 tons of lithium hydroxide are to be delivered annually from the new production facility to the German car manufacturer BMW as part of an existing supply contract.
With this project, Saudi Arabia also wants to strengthen its role in the production of electric vehicles and in the battery supply chain and detach itself from oil revenues.
Lithium is considered the most important raw material for e-mobility. All car manufacturers are trying to secure their supply of the raw material for the expansion of their e-car fleets in the long term. ford announced just a few days ago that it would invest in lithium on a large scale Canada to have secured. A contract has been concluded with the company Nemaska Lithium for the supply of lithium products, which also includes lithium hydroxide, which is important for rechargeable batteries. “Lithium and rare earths will soon be more important than oil and gas,” said EU Commission President Ursula von der Leyen (64) recently.