As the demand for electric vehicle (EV) metals grows across Europe, global mining giant Rio Tinto and UK-based refinery developer Green Lithium have joined forces to create a robust domestic lithium supply chain. This strategic partnership is set to boost the UK and EU’s automotive and manufacturing sectors, while also advancing decarbonization goals.
Rio Tinto – Green Lithium Partnership Sparks Hope for Europe’s Lithium Future
Green Lithium plans to construct a large-scale lithium refinery in Teesside, England. The facility will produce high-purity lithium chemicals, essential for batteries in the UK and EU automobile industry. What makes this project unique is its focus on sustainability. To reduce environmental impact, the company will use advanced technology to process low-carbon spodumene concentrate.
Philippe Bourdages, Vice President of Minerals Sales at Rio Tinto remarked,
“Rio Tinto and Green Lithium share ambitions related to decarbonization and today’s announcement is an important step forward in our journey towards unlocking the end-to-end battery metals supply chain in Europe. Alongside Green Lithium, we are looking to supply the global rollout of green battery technology to feed the significant European market demand.”
Rio Tinto will play a significant role in boosting lithium production. This initiative comes at a crucial time. Europe, despite being a key player in the EV market, lacks sufficient lithium refining capabilities. Currently, much of the global supply chain is controlled by Chinese companies.
This joint venture is expected to help reduce Europe’s dependence on imports, thereby securing a sustainable supply of battery metals.
Most importantly Sarah Jones MP, UK Government Minister for Industry and Decarbonisation applauded this deal, noting,
“This is great news for Green Lithium and Rio Tinto and will not only support high-skilled jobs in the North East but boost our critical minerals supply chains as we continue to build a cleaner, greener future for our automotive industry and drive forward our mission to net zero.”
Unlocking Green Lithium’s Sustainable Lithium Refinery in Teesside
Green Lithium’s lithium refinery in Teesside, North East England, aims to set new sustainability standards. With a low-carbon refining process, it will reduce emissions compared to traditional resource-heavy methods. This is possible due to its location in a region with abundant clean energy options.
The refinery will use renewable energy sources, including on-site solar and wind power. To further cut emissions, the facility will enter into green power agreements, ensuring its electricity comes from clean sources. By 2035, the plant also aims to fully transition to green hydrogen for gas needs, replacing natural gas.
Guy Hatcher, Head of Strategic Business Development and Co-Founder at Green Lithium highlighted that as per Minviro’s Life Cycle Assessment (LCA) report, the refinery’s emissions profile is set to outperform existing operations. It can potentially reduce the overall carbon footprint by 75% compared to current refineries. With these innovations, the refinery is on track to lead the way in sustainable lithium production for the growing battery market.
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Why Lithium is Crucial for Europe’s Net Zero Goals?
It’s a well-known fact that lithium is a key material for electric vehicle (EV) batteries and energy storage systems and would significantly reduce Europe’s dependency on fossil fuels in the future.
According to the EU’s Critical Raw Materials Act (CRMA) which is part of the Green Deal Industrial Revolution,
“Ensures EU access to a secure and sustainable supply of critical raw materials, enabling Europe to meet its 2030 climate and digital objectives.”
The CRMA emphasized that critical raw materials are essential to Europe’s economy but are vulnerable to supply disruptions. Demand for these materials is rapidly increasing due to global decarbonization efforts. Furthermore, the council has predicted:
- By 2030, the EU’s need for lithium will rise twelvefold, and by 2050, it will increase twenty-onefold.
However, Europe currently imports 81% of its lithium and lacks domestic refining capacity, relying heavily on suppliers from Chile and China. The CRMA tackles Europe’s supply vulnerabilities by building strong, resilient, and sustainable value chains. Additionally, it aims to enhance domestic extraction, refining, and recycling while lowering import reliance and monitoring supply disruptions.
CRMA’s 2030 Milestones for Domestic Capacities
The Act sets these benchmarks along the strategic raw materials value chain and for the diversification of the EU supplies
- at least 10% of the EU’s annual consumption for extraction
- at least 40% of the EU’s annual consumption for processing
- at least 25% of the EU’s annual consumption for recycling
- no more than 65% of the EU’s annual consumption from a single third country
Lithium Prices Stabilize While Cobalt Trend Low, A S&P Global Report
Passenger plug-in electric vehicle (PEV) sales rose 26.5% year over year in August, driven by growth in China, though Europe’s top markets saw a decline of over 60,000 units due to Germany’s end of subsidies.
With slowing PEV demand in Europe and the U.S., battery makers are delaying expansions, and automakers are pushing back electrification goals.
The key highlights of the S&P Global analysis were: Lithium prices stabilized shortly because of CATL’s mine shutdown and high seasonal demand, but the market was oversupplied. Conversely, cobalt prices fell 1.7% in September, and the excess supply is likely to continue until 2028, keeping prices low.
EU’s Quest for Reliable Supply Chains
To diversify supply, the EU is also forming global partnerships to secure domestic supply chains and boost sustainable economic growth. Significant deposits have been found in Serbia and Germany, However, challenges like environmental concerns and regulatory hurdles have slowed progress.
One major example is Rio Tinto’s efforts to revive its Jadar lithium project in Serbia. This project, set to be Europe’s largest lithium mine, had its license revoked in 2022 due to environmental protests. However, with legal approval in July 2023, the project’s resumption was on track. Rio Tinto estimates that the Jadar mine could produce up to 60,000 tons of lithium annually, which would meet nearly 20% of Europe’s demand for EV batteries.
We can infer that the partnership between Rio Tinto and Green Lithium not only supports the automotive industry but also aligns with wider efforts to achieve net zero emissions. Both companies are committed to decarbonization, and this project could significantly reduce the carbon footprint of lithium production in Europe.
Last but not least, Sean Sargent, Chief Executive Officer of Green Lithium, expressed himself by saying.
“The EV and battery revolutions are fundamental to reducing the carbon emissions that contribute to global climate change. By building our refineries, we will accelerate the adoption of EVs and sustainable energy storage through the increased supply of low-carbon, battery-grade lithium chemicals. Fulfilling this vision requires the right partners, and in Rio Tinto we have found an exceptional potential commercial partner.”
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