The development of a large-scale battery-grade lithium refinery in Portugal, a joint venture between Portuguese energy company Galp and Swedish battery manufacturer Northvolt, is experiencing delays. The project, known as Aurora, was initially scheduled to commence commercial operations in early 2026.
With an estimated investment exceeding 1 billion euros, the refinery aims to produce up to 35,000 metric tons of lithium hydroxide annually, a key component in lithium-ion battery production. The facility’s planned output could support battery production of 50 gigawatt-hours per year, with Northvolt intending to utilize up to half of the plant’s capacity.
Galp has reported that the project’s timeline is being affected by several factors:
- Project Complexity: The intricate nature of the venture requires additional time for thorough planning and execution.
- Funding Uncertainties: The consortium is working to secure access to national or European grant funds, which are currently not guaranteed.
- Pending Studies: Necessary assessments for the final investment decision are still in progress.
- Supply Chain Considerations: Clarity is needed regarding the commencement of spodumene concentrate production from Portuguese mines.
While the European Investment Bank is expected to provide financing of up to 825 million euros in the form of a loan, the project partners emphasize the importance of securing grants to ensure competitiveness with similar ventures in Europe, the United States, and China.
The delay in this project may have implications for Europe’s efforts to establish a robust domestic battery supply chain. As the situation develops, the revised timeline for the refinery’s completion remains to be determined.
Source: Reuters
