Lithium Ionic advances project financing with LOI for $266m
The funding represents 100% of the capital expenditure outlined in a May 2024 feasibility study.
Portuguese energy company Galp said late on Tuesday it has dropped its plan to build the Aurora lithium refinery after it failed to find a new partner to replace Northvolt, a Swedish maker of batteries for electric vehicles.
Galp was left alone in early 2024, when Northvolt said it would not invest in the 50-50 joint venture set up in November 2021 to build a lithium processing plant in Setubal, on Portugal’s coast.
The project’s investment was estimated at more than 1 billion euros ($1.05 billion).
The refinery, which was scheduled to start commercial operations in early 2026, was facing delays due to the complexity of the project and uncertainty about funding.
Low lithium prices following oversupply from China also made the project less attractive.
Northvolt, Europe’s biggest hope for an electric vehicle battery champion, last week filed for US Chapter 11 bankruptcy protection after talks with investors and creditors including Volkswagen and Goldman Sachs for funding failed.
($1 = 0.9544 euros)
(By Joanna Jonczyk-Gwizdala; Editing by Inti Landauro and Louise Heavens)
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