European Lithium has announced plans to build a lithium hydroxide plant in Saudi Arabia in partnership with Obeikan Investment Group. It will specialize in processing the spodumene concentrate from the Wolfsberg lithium mine in Austria.
Under the shareholder agreement, the newly formed joint venture company Arabian New Energy claims exclusive rights to purchase spodumene from the Wolfsberg project.
The facility is expected to be built to meet initial capacity and product specifications based on a binding long-term supply agreement with German automaker BMW, which has invested already $15 million.
“This is another huge milestone for Wolfsberg project, following on from the recent commitment made by BMW,” said executive chairperson Tony Sage. “We now have two very dedicated partners to ensure we fulfil our ambition of becoming the first European producers of both spodumene and hydroxide." After these key milestones have been achieved, the next steps in the development of Wolfsberg will be “a lot easier”, he added.
Within six months, it is expected to prepare a final feasibility study for the divided projects and secure the necessary financing to begin construction. Arabian New Energy's board of directors appoints a leading engineering, construction and procurement management company to oversee the construction of the hydroxide plant.
European Lithium is a lithium explorer and developer in Australia, Austria, Ireland and Ukraine.
Hélène Tarin, Editor-in-Chief of the Asian Bureau, Rough&Polished
