FOCUS ON – METALS & MINING
ZINNWALD: EUROPE'S FIRST MAJOR LITHIUM PROJECT ENTERS FEASIBILITY PHASE Europe's first major lithium project has entered the feasibility stage as EU industry leaders and officials look to eventually move the bloc's automotive and electronics sectors away from chaotic supply chains and reliance on East Asian suppliers. Zinnwald Lithium's site is located on the German-Czech border in the state of Saxony.
10 Industry Europe
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ocated about 35 km outside of Dresden on the German-Czech border, Zinnwald Lithium acquired the site at the end of 2020 for around €8.8 million. The project has received funding from several sources as EU industry continues to suffer under the ongoing semiconductor shortage. With an estimated net present value (NPV) of around €428 million, the site should provide a stepping stone for EU-sourced lithium for chips and batteries and test the waters for future projects located within the EU. Originally specialising in the production of lithium fluoride for use in electrolytes for
lithium-ion batteries, the project was driven by similar end-market drivers as the rest of the lithium space but with a slightly more specialised product. The company is set to conduct a new feasibility study on the back of a similar one conducted in 2019 by the site's original owners. Mining has long been a major sector in this part of Germany, which means that much of the infrastructure, including local support schemes, is already in place. Chemicals are also a big part of German industry, which can help in the refinement of lithium by-products.
