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Upon successful completion, the project would contribute to the French and European Union’s energy transition ambitions.
It would also increase Europe’s industrial sovereignty at a time when car and battery manufacturers are heavily dependent on imported lithium, which is a key element in the energy transition.
The results of surveys carried out confirm that the deposit has very attractive concentrations and quantities of lithium. Imerys aims to produce 34,000 tonnes of lithium hydroxide per year from 2028, making the group a leading supplier to the European battery market and a key player in the global lithium industry.
This project is a response to the challenges introduced by the energy transition: it offers a long-term solution that addresses Europe’s decarbonization ambitions while also increasing French and European sovereignty by reducing dependency on imports.
Lithium - a key raw material and component for Li-ion batteries - was identified as critical by the European Commission in 2020. Its consumption is expected to grow exponentially in the coming years.
As well as reducing the impact on its ecosystem, Imerys would target low CO2 emissions from its operations, with the aim to produce lithium with less than half of the CO2 emissions of typical existing hard rock lithium operations in the world.
Examples of CO2 reduction initiatives would include an electric mining fleet, transport by underground pipelines, trains, or the use of the French low-carbon electricity mix.
According to initial assessments, the project would reach a production target of 34,000 tonnes of lithium hydroxide per year for at least 25 years. It would be one of the European Union’s largest lithium mining projects and could, once fully operational, equip the equivalent of 700,000 electric vehicles with lithium-ion batteries.
Imerys is finalising the technical scoping study to explore various operational options and refine geological and industrial aspects relating to the lithium extraction and processing method, which must meet demanding technical, environmental, and economic criteria. Imerys is also evaluating the possibility of recovering valuable co-products (felspar, tantalum, tin).
Based on the most advanced technology, the project is estimated to involve a construction capex of approximately €1bn. The cash cost of the lithium produced at Beauvoir is estimated to be ca. €7-9/kg.
The estimated cost would be competitive, especially in the European market, and would secure an attractive return for the project in line with the group’s long-term value creation goals.
Once the laboratory and industrial pilot phases have been completed, production and commercialization are expected to begin within the next five years. It is anticipated that 1,000 direct and indirect jobs and an international centre of excellence for lithium extraction from hard rocks would be created in the Auvergne Rhône-Alpes region. ■