Europe seeks to secure lithium with more local mining efforts

In recent years, the European Union has increasingly focused on the strategic implications of the concentration of supply chains in specific regions. Lithium may emerge as an essential resource for the 21st century economy, with an importance comparable to the importance of oil in the 20th century.

China produces about two-thirds of the world’s refined lithium supply, and many European leaders are concerned about the geopolitical repercussions.

With global demand for lithium expected to grow five-fold by 2030, driven mainly by the boom in the electric car battery industry, Europe is striving to build its own capabilities in lithium mining and processing.

For many EU member states, this process begins with digging into their domestic resources.

From Germany to Portugal, mining companies are racing to search for promising new lithium discoveries. As for countries that do not have promising lithium deposits, storage is the only option.

In this context, the European Commissioner for Industrial Strategy, Stephane Ségournet, said in an interview with Reuters: “All European countries today possess strategic reserves of oil and gas, but we must do the same for strategic raw materials.”

Opposition and criticism

At the beginning of this year, it was believed that Europe contained only 5% of global lithium deposits. Portugal was home to the only commercial lithium mining operation in Europe, dedicated to use in the ceramic industry.

Now, the European Union has classified the Barroso lithium mining project in Portugal as “strategic,” under the Vital Ore Minerals Law. Large-scale production at the site is expected to begin by 2027.

However, the project faces local opposition, and a rare UN report condemned the lack of transparency surrounding it.

As in Portugal and elsewhere, Europe’s rush to extract lithium has sparked criticism from environmentalists who fear the impact of mining operations.

Political situation

There is another country that possesses large lithium deposits located close to the European Union, which is Serbia, the country located in Eastern Europe, which has been a candidate for European Union membership since 2012.

Johannes Lavin, a specialist in energy affairs at the Belgian University of Ghent, said: “The European Union’s interest in Serbia has almost been exaggerated, as it is claimed that it alone can provide up to 15% of Europe’s lithium needs,” noting that the mineral “lidarite”, rich in “lithium”, is unique in the Yadar Valley in Serbia.

He explained that the extraction of this stable metal is relatively low-impact, unlike the extraction of other types of lithium, but political concerns still exist.

Lavin added: “Questions about Serbia’s commitment to European principles, and to a lesser extent, its relations with Russia, pose major obstacles,” pointing out that the international mining company “Rio Tinto” has long supported the project, and welcomed the inclusion of the Serbian mine within the framework of the “Mining Resources Management” of the European Union last summer, but it announced the suspension of its local operations due to opposition from environmental groups.

For his part, Neven Cveticanen, a researcher at the Institute of Social Sciences in Belgrade and former member of the Serbian Parliament, said: “Sooner or later, this project or a new (lithium) mining project will move forward in Serbia.”

Tsveticanin acknowledged that the political situation is not ideal for large-scale projects, saying: “Serbia lacks several conditions, including political stability due to the ongoing student protests.”

“white gold”

Other countries hope to be aware of Europe’s wealth of “lithium” or what has come to be called “white gold.”

The British company Neptune Energy announced the discovery of 43 million tons of lithium carbonate in the German state of Saxony-Anhalt. The company proposed extracting the metal from brine in a process that requires minimal land use.

Strategic mining analyst Christopher Ecclestone said: “This discovery represents a potential qualitative leap for the European Union’s ambitions in the field of lithium. If this discovery is confirmed, Germany’s reserves will place Europe among the ranks of global producers.”

He added: “If this discovery is confirmed, it may be comparable to what is discovered in the (Lithium Crescent) in South America, which extends through Bolivia, Chile and Argentina. Although the United States has been importing lithium from this region for a long time, this is not without geopolitical risks.” He explained, “For example, Bolivia called for the establishment of a lithium bloc in 2020, similar to the OPEC Organization of Petroleum Exporting Countries,” noting that last year, the state-owned “Lithium” Company in Bolivia signed development agreements with Chinese and Russian commercial entities.

Future demand

The European Union approved the Vital Raw Materials Law in 2024, as this law contributed to accelerating the development of mining and recycling projects classified as “strategic.” However, the speed of implementing the law sparked criticism, especially from Green Party representatives who believe that the approval process lacks transparency.

Of the 47 projects classified as “strategic” at the time under the law, 22 of them included “lithium” in one form or another. Lithium recycling will also play a role in meeting future demand.

Lithium may ultimately determine the balance of industrial power around the world. Whether lithium is extracted from the valleys of Serbia or extracted from deep geothermal brines in Germany, lithium mines in Europe hope to rewrite the global energy map. About “National Interest”

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A raw material of strategic importance

The expansion of the use of electric cars has made lithium a raw material of strategic importance. Global demand for it has risen sharply in recent years.

Until now, Europe has relied on supplies from South America, Australia and China.

The European Union currently aims to cover at least 10% of its needs from its domestic production by 2030. The Union also seeks to process “lithium” locally, in addition to manufacturing batteries and promoting recycling. The goal is to create a lithium cycle in Europe.

An experimental station has been established in the Upper Rhine Plain, where lithium is extracted not from rocks, but from brine solutions. Whether in a refinery, a battery cell research center, or an electric car battery recycling plant, each stage presents technical challenges to the development of the lithium cycle.

Finland opened its first lithium mine last month, with the aim of supplying the battery production chain in Europe. The mining company “Keliber” began extracting lithium in the west of the country, marking the start of the first processing of “lithium” used in the manufacture of batteries in Europe, according to what was reported by the Finnish Broadcasting Corporation.

This long-awaited project aims to produce the first high-quality lithium used in the battery industry.

“We will be the first to enter European production, and this of course gives us a competitive advantage due to the short delivery distance compared to imports from China,” said Kelber CEO, Hanu Hutala. According to reports, the mining area extends across three regions: Kaustinen, Kokkola, and Kronopi.

• Portugal was home to the only commercial lithium mining operation in Europe, intended for use in the ceramic industry.

• The European Union approved the Vital Raw Materials Law, which contributed to accelerating the development of mining and recycling projects classified as “strategic.”