As Europe accelerates its search for strategic minerals like lithium and zinc to fuel the clean-energy transition, a proposed underground lithium mine in southwest Spain has ignited a fierce debate over economic opportunity, environmental protection, and the long-term future of rural communities.
In the sunlit Valdeflores valley near Cáceres, olive farmer Gonzalo Palomo loads freshly picked Cacereña olives into his truck while his young son plays with their shepherd dogs—a peaceful scene now overshadowed by plans to tap into the EU’s second-largest hard-rock lithium reserve beneath their land.
The proposed San José Lithium Project, led by Extremadura New Energies, promises enough lithium each year to power roughly 800,000 electric vehicles, boosting Europe’s battery independence and advancing its climate goals. But for many residents, the project raises questions about water security, wildlife, local identity, and who truly benefits from the jobs it creates.
A Promising Mine, A Divided Community
Extremadura New Energies—owned by Australia’s Infinity Lithium—plans an underground mining system with large machinery tunnels, extraction passages, and two three-kilometre tunnels linking the mine to a processing plant. The company insists the project will not harm water supplies, contaminate soil, or create disruptive noise.
Regional authorities are more cautious. After reviewing the company’s proposal, Extremadura’s government requested deeper technical details, reflecting widespread concerns about environmental risks, including threats to endangered species such as the Spanish imperial eagle.
At the same time, the region faces unemployment—one of the highest rates in Spain—prompting hopes that lithium could spark long-awaited economic renewal.
“Extremadura is eager for industrial and economic development,” said Raquel Pastor, the region’s director of industry, energy, and mining.
A Strategic Resource in Europe’s Energy Transition
Lithium is central to Europe’s clean-energy ambitions. It powers electric vehicles, battery storage, and renewable energy technologies, making it a flagship mineral under the EU’s Critical Raw Materials Act (CRMA). The CRMA aims for Europe to extract at least a share of its critical minerals domestically—reducing dependency on global suppliers, particularly China.
Spain holds an estimated portion of Europe’s lithium resources, yet no lithium mining projects have been approved so far. Industry interest is high, but local opposition has repeatedly stalled progress due to environmental, agricultural, and tourism concerns.
Jobs Promised—But for Whom?
Extremadura New Energies claims the mine and refinery would create:
1,500 construction jobs over two years
700 operational jobs during the mine’s estimated 26-year lifespan
But local unions remain skeptical. “We’ve heard these promises before,” said regional union leader Ricardo Salaya Monsell. Still, he acknowledges that quality industrial jobs could help the struggling economy—if environmental guarantees are met.
A deeper concern is whether locals will actually fill these positions. High-tech mining demands specialized skills, raising fears that many roles will go to outsiders.
To address this, the company has launched subsidized online courses in lithium-battery production and renewable energy. So far, 500 residents have enrolled.
Agriculture vs. Mining: Competing Visions for the Region
Farmers like Palomo argue that sustainable agriculture could generate as many—and more durable—jobs over the next decades. A University of Extremadura study suggests that agriculture may offer longer-term employment prospects compared to a mine with a fixed life cycle.
Only a portion of the region currently works in agriculture, while more than 70% depend on the service economy. Yet many fear that mining could damage the reputation and ecosystem that support both farming and tourism.
“What will happen when the mine shuts down?” Palomo asked. “Will people here be forced to leave once again to find work elsewhere?”
Environmental Risks and Irreversible Change
While the company insists the mine will be clean and low-impact, experts urge caution. “There is no precedent for a modern industrial mine that has operated and closed without environmental contamination,” said U.S. geophysicist Steve Emerman, who has advised the European Parliament on mining impacts.
For families like the Palomos, whose sheep and olives thrive in the centuries-old Dehesa landscape, the stakes are deeply personal.
“Our ancient Dehesa and our thousand-year-old olive trees are at risk for a project that lasts just 26 years,” Palomo said. “The cost is too high.”
A Critical Decision for Europe and Extremadura
As the EU pushes toward climate neutrality, local communities in mineral-rich regions face difficult choices. The Cáceres lithium project is still moving through Spain’s permitting process and remains on the EU’s shortlist of strategic mining initiatives.
What happens next will help define not only Extremadura’s future, but also Europe’s broader strategy to balance environmental stewardship, economic development, and the race for critical raw materials.
Whether lithium mining becomes a lifeline or a liability remains uncertain—but the outcome will echo far beyond the olive groves of Valdeflores.
