This morning, European Lithium Limited [ASX:EUR] highlighted its participation in a €1,000,000,000 battery production funding programme launched by the German Federal Ministry of Economic Affairs and Energy.
At time of writing, European Lithium’s share price is trading at nine cents, up 2.27%.
EUR is part of a syndicate applying for funding from a programme led by BMWi, to boost battery production in Germany. And because of the lithium resources mined and produced in Austria, the group will be able to ‘represent the entire value chain within Europe.’
European Lithium’s share price helped by Wolfsberg project update
This morning EUR gave an update on its Wolfsberg Lithium project, located in Austria.
European lithium’s chairman, Tony Sage, said:
‘We are progressing full steam ahead and it is our strong belief that our Wolfsberg project will be the first local producer of lithium hydroxide in Europe.’
EUR’s Non-Executive Director, Stefan Muller, said:
‘The current developments are a testament to the quality of our project. The great interest and support expressed by industry, capital markets as well as local and European political members highlight the unique selling propositions of the Wolfsberg Project. With lithium from the Wolfsberg project located in Carinthia positioned at the very start of the value chain, our future industry partners will be the only ones in the near-term that are able to boost an entirely European solution for battery production, and complying with the most demanding global standards in terms of a fully sustainable production cycle, from mine to battery.’
The Wolfsberg Lithium project has an established mine, which already has approximately 1,500 tonnes of pegmatite ore (completed back in 2013). This gives EUR some benefits, and the material is already there and able to be used in the lithium carbonate refining process, as well as lithium hydroxide products.
Based on results, EUR is set to be in a strong position to produce premium quality lithium products right off the back, and gives an important advantage to the company as well as potential offtake partners.
What’s to come for European Lithium?
European Lithium is currently in advanced stages of long-term offtake agreements with multiple European companies, some of which are members of the previously mentioned syndicates.
Based on the encouraging results, European Lithium’s share price is edging higher and could continue to do so, if the development of its lithium projects goes as planned.
More to come.
For Money Morning
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