London and Geneva, 9 May 2022
Lithium processing company Green Lithium has agreed terms with Trafigura, one of the world's largest commodities trading companies, that will support the development of one of the first centralised commercial lithium refineries in Europe. The new refinery will supply European electric vehicle and battery manufacturers with battery-grade lithium chemicals. Under the newly-established relationship, Trafigura plans to supply lithium feedstock required for the planned UK-based refinery and invest equity in Green Lithium's development phase funding round.
Trafigura is an established leading participant in the international nickel and cobalt trading markets. It continues to invest significant resources to diversify and develop its business across other battery metal commodities, strengthening its position as a leader in the global battery and electric vehicle value chain. Given the importance lithium plays in the supply chain - and, more broadly, in the transition to a decarbonised, greener economy - an agreement with Green Lithium represents a milestone for Trafigura's international battery metals business.
It is forecast that the growing demand for battery-grade lithium chemicals will not be met by global refining capacity that is currently available or planned. Increasing and diversifying supply will be vital for the commercial viability of the European battery supply chain and, therefore, the electric vehicle revolution and transition to net zero.
Green Lithium is at the forefront of this transition. There is currently no commercial lithium refining capability in Europe, leaving the continent's rapidly growing electric vehicle and sustainable energy storage sectors wholly reliant on China for critical battery metals. In delivering its lithium refinery, Green Lithium expects to create the missing link and guarantee upstream supply chain security.
Green Lithium has unique intrinsic value: offering flexibility as a merchant refinery capable of producing different battery-grade lithium chemical products to meet dynamic end-market needs; utilising renewable energy and hydrogen in the refining process where possible to minimise CO2 emissions and wider environmental impact; creating circular economies in battery recycling whilst eliminating process waste through sustainable re-use of by-products; and delivering the first-of-a-kind project with an execution-focused team that has extensive experience in successfully completing multi-billion-pound, internationally-strategic infrastructure programmes.
Sean Sargent, Chief Executive Officer at Green Lithium, said: "The electric revolution is fundamental to reducing the carbon emissions that contribute to global climate change and ensuring net-zero targets can be met. Green Lithium's refinery will accelerate the adoption of electric vehicles and sustainable energy storage through the increased supply of low-carbon, battery-grade lithium chemicals - a key component of lithium-ion batteries.
Image by Trafigura Group Pte.
"Fulfilling this vision requires the right supply chain and investment partners. In Trafigura, we have found the perfect match in a company that not only has vast experience and expertise in the battery supply chain, but that is also willing to make a key equity investment to support Green Lithium in achieving its project objectives."
Socrates Economou, Head of Nickel and Cobalt Trading for Trafigura, said: "In addition to our core business in physical commodities trading and logistics, Trafigura has a strong track record of financing and investing in mining and metals projects globally. This landmark project has the potential to revolutionise the European supply chain for EV production and sustainable energy storage at this critical time in the energy transition.
"We're looking forward to working with Green Lithium to support its development, as we continue to bring Trafigura's global expertise to the fore in transforming the battery metals supply chain for a low-carbon future."
Following its initial private funding round, securing over 5x the target amount, Green Lithium is currently raising capital to fund its development phase activity.
About Green Lithium
Green Lithium is an innovative lithium processing company with plans to build and operate a large-scale lithium refinery in the UK, and provide high-purity lithium chemicals to UK and European markets. The company will harness industry-leading process technology enabling clean, low-carbon processing of high volumes of various raw material sources.
At present, the battery-metal supply chain is dominated by East Asia. There is no refining capability in Europe despite a significant market opportunity. Working with key strategic partners to address the need to improve the European battery-metal supply chain, Green Lithium will support the net-zero ambitions of society to transition to the future green economy. Visit: www.greenlithium.co.uk
Founded in 1993, Trafigura is one of the largest physical commodities trading groups in the world. At the heart of global supply, Trafigura connects the world with the vital resources it needs. Through our Oil & Petroleum Products, Metals & Minerals, and Power & Renewables divisions, we deploy infrastructure, skills and a global network to move commodities from where they are plentiful to where they are needed most, forming strong relationships that make supply chains more efficient, secure and sustainable.
Trafigura also owns and operates a number of industrial assets including a majority share of global multi-metals producer Nyrstar and fuel storage and distribution company Puma Energy; and joint ventures Impala Terminals, a port and logistics provider, and Nala Renewables, a power and renewable energy investment and development platform. With over 1,000 shareholders, Trafigura is owned by its employees and employs over 13,000 people working in 48 countries. Visit: www.trafigura.com
Trafigura Group Pte. Ltd. press release