Li
Imerys seeks European content rule for EVs to launch €1.8B lithium project
A French industrial group that’s facing delays at a major new lithium project is calling for European Union rules that would force carmakers to buy the battery metal from mines inside the bloc.
Imerys SA, which is seeking to develop lithium mining and refining facilities in France costing as much as €1.8 billion ($2.1 billion), is suggesting that at least 20% of lithium used in electric car batteries should come from the EU by 2031, rising to 40% by 2036.
In a white paper recently sent to the European Commission, the industrial metals producer — which is controlled by Groupe Bruxelles Lambert — said that making this mandatory would have a marginal impact on the cost of cars made in Europe.
“In such a key industry like automotive, I think Europe needs to be independent as much as possible from the rest of the world,” Imerys chief executive officer Alessandro Dazza said in an interview Thursday. “To launch a project of this magnitude, investors need a clear framework.”
The lobbying effort comes as the EU seeks to beef up its plan to reduce its reliance on imports of critical raw materials used in everything from weapons to wind turbines and electric cars. While there’s mounting unease over China’s willingness to boost its grip on key supplies, European automakers and suppliers remain at odds over details of local content rules that can add to production costs.
Plans to invest in lithium mining and refining in Europe have also faced headwinds due to falling prices for the material amid slower-than-expected EV adoption on the continent as well as a production glut in key lithium-producing countries such as Australia, Chile and China.
“Today there is an imbalance between demand and offer, but demand will continue to grow strongly because of penetration of electric vehicles,” Dazza said. “All the known projects today will not be able to cover this demand.”
Due to weak lithium prices, Sibanye Stillwater Ltd. continues to assess when to commission its project in Finland. However, Vulcan Energy Resources Ltd. said this week that it secured a A$3.9 billion ($2.6 billion) financing package for a lithium project in Germany that will use geothermal power.
Doubts about demand are also persisting as Germany is leading a charge to tone down a EU ban on the sale of combustion-engine cars beyond 2035, amid calls from some automakers to get more time to transition.
Back in July, Imerys delayed the potential start of commercial lithium production in central France by two years to 2030, assuming the project is approved by the end of 2027, citing longer-than-expected permitting processes. It would produce 34,000 tons of lithium hydroxide a year, covering the needs to make 700,000 electric-car batteries.
The company remains in “advanced” discussions to sell a minority stake in the project to an investor, the Imerys CEO said. Imerys is also studying lithium production in Southwest England. It aims to complete the pre-feasibility studies of its project in Cornwall next year, Dazza said.
Liontown inks spodumene supply deal with China’s Canmax Technologies
Australia’s Liontown said on Tuesday it has signed an offtake deal to supply 150,000 wet metric tons of spodumene concentrate in 2027-2028 from its Kathleen Valley project to Chinese lithium chemicals maker Canmax Technologies.
Pricing will be based on a formula linked to spodumene concentrate indices, the lithium miner said in a statement.
Spodumene concentrate, used to make lithium chemicals for EV batteries, is seeing growing efforts to standardize auctions for clearer benchmarks and stronger market links.
The flagship Kathleen Valley project, which produced its first concentrate in July 2024, is powered by about 80% renewable energy.
Liontown has offtake agreements with automakers, including Tesla and Ford Motor.
Last month, Liontown said its first online auction for spodumene concentrate from Kathleen Valley fetched a price far above prevailing spot levels, the latest indicator to suggest a long-awaited recovery in lithium demand taking root.
(By Nikita Maria Jino; Editing by Sherry Jacob-Phillips)
Albemarle jumps as UBS says it’s time to buy on lithium recovery
Top lithium producer Albemarle Corp. rose the most among peers after UBS analysts said now is the time to buy the stock with rising prices of the battery metal set to drive up earnings.
Albemarle gained as much as 9% on Friday and traded 6.7% higher as of 12:52 p.m. in New York. That was the best performance among specialty chemical producers tracked by Bloomberg
The company was raised from the equivalent of hold by UBS analysts including Joshua Spector, who cited the lithium market’s likely switch from a surplus to a small deficit. That lays the groundwork for a possible “lithium price fly up scenario” in 2027, they wrote in a Dec. 4 note to clients.
“We see a combination of higher energy storage demand and years of slower western capacity additions now pushing lithium markets into deficit later in 2026,” the analysts wrote.
Producers such as Albemarle are starting to benefit from a price recovery driven by a strong demand outlook for electric vehicles and large-scale battery storage, after years of oversupply. To be sure, while spot lithium prices are more than 50% above a June low, they’re still about 85% below a 2022 peak.
(By James Attwood)
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