AURORA LITHIUM CONVERSION FACILITY

The project concerns the construction of a commercial plant to produce lithium hydroxide from spodumene. Lithium hydroxide is one of key material used for electric vehicle (EV) batteries manufacturing. The annual production is expected to total 32 000 metric tons, enough to power over 700 000 EVs. The start of commercial operations is planned in 2028. The plant will be located in Setubal, Portugal.

The global lithium processing capacity is highly concentred, creating a strategic dependency and potential bottleneck for the EU. The project will be amongst the first to establish a sustainable supply of lithium hydroxide in Europe, a key component in lithium-ion batteries needed for the green transition. The project supports the EU's CRM Act target to achieve the local processing capacity of at least 40% of the Union's annual consumption of strategic raw materials. Furthermore, the end-users use lithium hydroxide to manufacture EV batteries that play key role in enabling the EU's green transition and in achieving the European Green Deal ambition to become climate neutral by 2050. The project is deemed to be eligible under the Sustainable Energy and Natural Resources public policy goal and in line with Annex II of the EIB's Energy Lending Policy that identifies projects related to the supply of Critical Raw Materials needed for low-carbon technologies in the European Union. As such, it contributes to both the EU and the EIB's policies and lending priorities and is therefore eligible under Article 309 point (c), Common interest.

The project is aligned with the Paris Agreement according to the EIB's latest definition as the project supports the development of electric vehicles ecosystem. The project concerns the capital investments in the construction of a greenfield manufacturing plant. These activities should fall under the Environmental Impact Assessment Directive (EIAD) ? Directive 2014/52/EU amending Directive 2011/92/EU. The EIA report and the compliance with any other applicable EU legislation (e.g., Industrial Emissions Directive, Habitats and Birds Directives) will be reviewed during the due diligence process. While the information is rather limited at the current stage of project development, the promoter has already demonstrated a progress in acquiring necessary permits and authorisations (e.g., awarded status of Project of National Interest with fast-tracking permitting decision). The contribution to climate action and environmental sustainability objectives (if any) will be assessed at the due diligence stage.

The promoter has been assessed by the EIB as being a private company not being subject to EU rules on public procurement or concessions. However, if at the project appraisal, the EIB were to conclude that the promoter is subject to the EU public procurement legislation then the Bank would duly inform the Commission Services and would require the promoter to apply those rules.