European Lithium Ltd (ASX:EUR) has entered into discussions with several European banks to secure project financing for its Wolfsberg Lithium Project and participate in a €1 billion battery production funding program launched by the German Ministry of Economy (BMWi).
The company is part of a syndicate applying for funds from the funding program to ramp up battery production in Germany, with the syndicate comprising numerous acclaimed industry players and partners from at least two EU states.
European Lithium’s non-executive director Stefan Mϋller said the current developments were a testament to the quality of the project.
He said: “The great interest and support expressed by industry, capital markets, as well as local and European political members highlight the unique selling propositions of the Wolfsberg project.
“With lithium from the Wolfsberg project located in Carinthia and positioned at the very start of the value chain, our future industry partners will be the only ones in the near-term that are able to boast an entirely European solution for battery production, complying with the most demanding global standards in terms of a fully sustainable production cycle from mine to battery.”
The company has engaged Germany-based Dorfner Anzaplan GmbH to develop the lithium refining process with the construction of a pilot plant underway.
Dorfner will be engineering and defining the lithium refining process in the coming months, and depending on the results, European Lithium will be in a strong position to manufacture premium-quality lithium products from the beginning.
These results will then be incorporated into a definitive feasibility study.
European Lithium chairman Tony Sage said: “We are progressing full steam ahead and it is our strong belief that our Wolfsberg project will be the first local producer of lithium hydroxide in Europe.”
European Lithium is also in advanced stages of discussions with several European companies regarding the completion of long-term offtake agreements.
The credit ratings of potential offtake partners, the funding expected through the BMWi syndicate, as well as other grants, will positively impact the net present value (NPV) calculated in the pre-feasibility study released on April 27, 2018.