Aurora Lithium is a joint venture between Galp, a leading energy company, and Northvolt, a prominent European supplier of sustainable battery cells and systems. Established to develop Europe’s largest and most sustainable lithium conversion plant, Aurora Lithium aims to produce high-quality lithium hydroxide, a critical component for lithium-ion battery manufacturing. The company is headquartered in Lisbon, Portugal, with its operational site located in Setúbal, Portugal, strategically positioned in the Sapec Bay Industrial Park.
The primary goal of Aurora Lithium is to strengthen Europe’s battery value chain by providing a localized and sustainable supply of lithium hydroxide, essential for electric vehicle (EV) batteries and renewable energy storage systems. The plant was designed to have an initial annual production capacity of up to 35,000 tons of battery-grade lithium hydroxide, enough to support the production of 50 GWh of batteries annually, equivalent to powering approximately 700,000 electric vehicles.
Despite its ambitious plans, the Aurora Lithium project faced significant challenges, including the withdrawal of Northvolt due to financial difficulties and Galp’s inability to secure a new international partner. As a result, the project was ultimately canceled in early 2024. However, the vision of Aurora Lithium remains a testament to the growing importance of sustainable lithium production in the global transition to clean energy.
Battery Technology
Aurora Lithium was focused on producing battery-grade lithium hydroxide, a key material for lithium-ion batteries used in electric vehicles, renewable energy storage, and consumer electronics. Lithium hydroxide is preferred over lithium carbonate in high-performance battery applications due to its superior thermal stability and energy density.
The company planned to utilize advanced conversion technologies powered by renewable energy to minimize environmental impact. This approach aligned with European sustainability goals, aiming to reduce carbon emissions and reliance on conventional energy sources. The production process was designed to integrate circularity principles, ensuring efficient use of resources and minimizing waste.
By producing lithium hydroxide locally, Aurora Lithium aimed to reduce Europe’s dependence on imported raw materials, fostering a more resilient and sustainable battery supply chain. The project also sought to set new benchmarks for environmental responsibility in lithium production, emphasizing the use of green energy and innovative processing methods.
Recent Projects
In 2023, Aurora Lithium announced plans to develop a lithium conversion plant in Setúbal, Portugal, with an initial production capacity of 35,000 tons of lithium hydroxide annually. The project was expected to involve an investment of approximately €700 million and create over 200 direct jobs and 3,000 indirect jobs in the region.
However, in early 2024, the project was canceled following Northvolt’s withdrawal due to financial challenges and Galp’s inability to secure a new partner. Despite this setback, Galp remains involved in lithium exploration through its partnership with Savannah Resources on the Mina do Barroso Lithium Project in northern Portugal.
Investors
Aurora Lithium was initially a 50-50 joint venture between Galp and Northvolt, two major players in the energy and battery sectors. Galp, a Portuguese energy company, brought expertise in resource management and industrial operations, while Northvolt contributed its knowledge of sustainable battery production and advanced technologies.
Following Northvolt’s withdrawal, Galp sought new international partners to continue the project but was unsuccessful. As of early 2024, the Aurora Lithium project has no active investors, and both Galp and Northvolt have ceased their involvement.
Business Details
Location: Lisbon, Portugal
Website: https://auroralithium.com
LinkedIn: https://www.linkedin.com/company/auroralithium/
