Arverne Group’s Lithium de France development in Alsace, France, has received strategic-project status under the EU Critical Raw Materials Act, supporting plans for an operation designed to produce approximately 27,000 tonnes of lithium carbonate annually while supplying geothermal heat.
The project combines lithium extraction from geothermal brines with renewable heat production, creating two planned revenue streams. Arverne is targeting an operating life of approximately 30 years, with geothermal heat production expected to reach around 2.2 TWh. Initial lithium production is planned for 2028, subject to the completion of engineering work, final permitting and the arrangement of sufficient financing for commercial development.
EU Strategic Status and Permitting Framework
The designation under the Critical Raw Materials Act is expected to support faster permitting procedures and improve access to European financing mechanisms. Strategic-project status does not constitute a construction permit, a final investment decision or a commitment of additional capital. The project’s development therefore remains dependent on regulatory approvals and the completion of preparations for construction financing.
Lithium de France is designed to produce lithium from geothermal brines rather than through conventional hard-rock mining or evaporation-pond operations. The same geothermal resources would also be used to generate renewable heat, integrating mineral extraction with energy production. The environmental footprint of this approach could be lower in certain respects than that associated with traditional lithium extraction, although operating performance at commercial scale has yet to be demonstrated.
Financing Arrangements and Senior Debt Target
Arverne has secured a convertible financing arrangement of up to €33 million, supported by Arverne and Equinor Ventures. The company is also preparing a larger project-finance package involving Macquarie and Crédit Agricole CIB.
An initial tranche of senior debt is targeted for 2027. The financing structure will need to provide sufficient debt and equity to support the project’s transition into commercial development. The next financing milestones include completing bankable engineering, finalising the project-finance structure and converting senior-debt discussions into committed capital. The EU designation may improve the project’s access to financing mechanisms, but it does not eliminate the need to secure funding on terms that support construction and long-term operations.
Lithium Recovery and Geothermal Operating Requirements
The technical development of Lithium de France depends on integrating lithium recovery, brine reinjection and geothermal operations reliably at the planned production scale. For potential lenders, key considerations include the stability of brine chemistry, lithium recovery rates, operating costs and the long-term performance of the geothermal reservoir. These factors will influence the project’s ability to sustain its targeted annual output and planned operating life.
The planned 27,000 tonnes of lithium carbonate per year and approximately 2.2 TWh of geothermal heat production underpin the project’s dual-output model. Achieving these targets will depend on the performance of the integrated extraction and heat-production systems. Arverne is targeting initial lithium production in 2028, with the intervening development period dependent on engineering completion, final permitting and the arrangement of project financing, including the targeted senior-debt tranche in 2027.
