BACKGROUND:

The battery-metal supply chain is dominated by East Asia, with no refining capability in Europe despite significant opportunity

+21% CAGR

forecast annual growth in global lithium-ion battery production capacity across 2021-2030, primarily driven by electric vehicle adoption

Currently each year the UK produces over 1 million cars and the EU over 10 million – with national governments announcing upcoming bans of new combustion-engine vehicle sales, the transition to electric vehicles will only accelerate

European refined lithium chemicals demand is forecast to reach 550,000 tonnes by 2030, primarily driven by rapidly-growing demand from the EV and lithium-ion battery industries

Without a secure supply of lithium the UK’s and the EU’s automotive industries will collapse, with widespread impact on local economies, employment security and governmental decarbonisation commitments

Security risk will worsen as the East Asian market consumes more of its own supply – this is the key commercial supply chain issue, namely: accessing refined lithium chemicals at any price

Meanwhile, the EU has introduced the Rules of Origin, mandating battery and car manufacturers to localise supply chains, forcing them to source precursor battery materials from UK or EU suppliers from 2024 or face punitive tariffs

Furthermore, the EU will mandate adherence to the Batteries Regulation, which many international refineries – and their downstream customers – must meet to ensure compliance

As the market for EVs grows, the supply chain needs to keep up

By building and operating the facility in the UK, Green Lithium aims to provide the missing link in the EV supply chain by connecting the UK and Europe’s lithium battery and cell manufacturers with international sources of raw lithium material