Infinity Lithium Corp Ltd’s (ASX:INF) (FRA:3PM) wholly-owned Extremadura Mining SL is participating in the Spanish battery consortium Battchain, which is seeking €1.2 billion in coronavirus funding.
Battchain, led by KIC InnoEnergy SE, has submitted an expression of interest to the Program for the Promotion of Industrial Competitiveness and Sustainability Projects (PICSP).
The funding will help Infinity’s San José Lithium Project, which has the potential to cornerstone the development of a fully integrated lithium-ion battery value chain in Spain and the European Union (EU).
Strategic role
Infinity head of institutional relations Cayetano Polo highlighted the potential strategic role that San José can play in attracting new companies and opportunities to Extremadura and the locality of Cáceres.
He added: "For the development of batteries and electric cars, the lithium that we can industrially transform here is essential, and this means that the opportunities for wealth and employment that can be opened up in Cáceres are immense.
“We are working to ensure that San José not only becomes a supplier of raw materials, but also that the new industry opts for Cáceres to set up here."
‘Right time to act’
EIT InnoEnergy Iberia chief executive officer Mikel Lasa said: "As the second-largest car-producing country in Europe, it is essential that we drive and accelerate a profound transformation of the Spanish automotive industry.
“Now is the right time to act, but we must do it collaboratively and with a European vision."
Financing for strategic projects
The Spanish Ministry of Industry, Trade and Tourism has stated that a central element of the PICSP will comprise a line of financing in the form of loans and grants for strategic projects for the national industrial transition.
In July 2020, EU leaders reached a historic agreement on a €750 billion coronavirus pandemic recovery fund, allowing Spain to mobilize an unprecedented volume of investment in the coming years.
Spain is forecast to be one of the largest beneficiaries with €140 billion in low-interest loans and grants.
The PICSP funding is facilitated under the recovery fund.
Battchain
Battchain comprises a group of leading Spanish companies and industrial projects aligned to accelerate green economic recovery and respond to the growing demand for batteries expected in Spain and Europe over the coming years.
The consortium aims to accelerate economic recovery through the development of the entire battery value chain in Spain, from raw material extraction to battery recycling.
The consortium will require an investment of €1.2 billion to deploy its industrial projects, predominantly related to the automotive sector.
The projects under the funding submission have the potential to generate more than 1,700 direct jobs, 12,000 indirect jobs, and revenues of up to €2.4 billion by 2030.
Battchain will also potentially eliminate 1.5 million tonnes of carbon dioxide per year.
San José Lithium Project
San José will potentially require pre-production capital expenditure, including contingencies, totalling US$309 million (about €256 million) and, if the submission is successful, represents a significant component in the Battchain submission.
San José’s long life project potential, for both lithium extraction and processing, can contribute to attracting other industry stakeholders and assist the progression of long term and skilled employment in Cáceres.