Europe’s lithium sector is entering a new phase focused on industrial execution, with mining projects, refining facilities, geothermal extraction systems and battery recycling plants being developed to strengthen regional supply security.
The shift comes as lithium becomes a strategic industrial material linked to electric vehicles, energy storage, grid systems, defence applications and advanced manufacturing. European policymakers are increasingly treating battery materials as part of industrial infrastructure rather than only as a climate-transition requirement. The European Union’s strategy now depends on creating a complete lithium value chain, from extraction and processing to recycling and battery-grade material production.
EU targets accelerate domestic lithium development
The policy framework is defined by the EU Critical Raw Materials Act, which establishes 2030 targets requiring the bloc to meet at least 10% of annual strategic raw material consumption through domestic extraction, 40% through processing and 25% through recycling. The legislation also aims to limit dependence on any single third country to no more than 65% at any stage of the strategic raw materials value chain.
The European Commission has additionally introduced the RESourceEU Action Plan, designed to mobilise up to €3 billion over 12 months for projects intended to reduce external supply dependence and develop alternative sources of critical minerals, including battery materials. These measures are changing how lithium projects are evaluated. Developers are increasingly expected to demonstrate not only resource potential but also supply-chain integration, traceability, battery-grade production capability and proximity to European industrial customers.
Germany develops geothermal lithium production model
Germany has become a major testing ground for alternative lithium supply models through Vulcan Energy Resources’ Lionheart project in the Upper Rhine Valley. The project is based on direct lithium extraction from geothermal brines and targets initial production of 24,000 tonnes per year of lithium hydroxide monohydrate. Lionheart is designed as an integrated industrial system combining lithium extraction, renewable heat generation, electricity production and conversion into battery-quality lithium material.
The project includes a planned 30-year production profile, with reported capacity sufficient to supply approximately 500,000 electric vehicle batteries annually, alongside 275 GWh of renewable electricity and 560 GWh of heat per year for local consumers.
The involvement of ABB highlights the industrial complexity of the project. ABB has secured contracts worth €46 million to supply electrical infrastructure for the lithium extraction plant in Landau, the central lithium facility at Frankfurt’s Industriepark Höchst, and associated well sites. The equipment scope includes high-, medium- and low-voltage distribution systems, transformers, drives, UPS systems and protection equipment, supporting the electrification and reliability requirements of the lithium production process.
Finland advances integrated hard-rock lithium development
Finland’s Keliber lithium project, owned by Sibanye-Stillwater, represents a different European supply model based on hard-rock mining and integrated refining. The project combines spodumene mining, concentration and conversion into battery-grade lithium hydroxide at the Kokkola Industrial Park.
Keliber is expected to produce approximately 15,000 tonnes per year of lithium hydroxide monohydrate over at least 18 years. The project has received EU Strategic Project status under the Critical Raw Materials Act, placing it within Europe’s framework for developing secure supplies of strategic materials.
France, Portugal and Central Europe expand lithium pipeline
Additional lithium developments across Europe are creating a diversified project pipeline based on different geological and processing approaches. In France, Imerys’ EMILI project is targeting approximately 34,000 tonnes per year of lithium hydroxide production.
The Cínovec project in the Czech Republic, operated through Geomet, a joint venture between ČEZ and European Metals Holdings, is considered one of Europe’s largest hard-rock lithium resources. The project aims to produce approximately 29,380 tonnes per year of battery-grade lithium hydroxide. Portugal’s Barroso Lithium Project, led by Savannah Resources, and Spanish developments including San José Valdeflórez and Las Navas add further supply potential. These projects face common European challenges, including permitting timelines, community acceptance, water management requirements and environmental legal processes.
Serbia’s Jadar project remains a strategic lithium development
Serbia’s Jadar project remains one of Europe’s most closely watched lithium developments. Rio Tinto has presented Jadar as a major lithium-borates resource, with earlier development plans targeting approximately 58,000 tonnes per year of battery-grade lithium carbonate production.
The project has also become a focal point for discussions around environmental safeguards, permitting credibility, local acceptance and cooperation between Serbia and European battery supply chains. Rio Tinto has stated that Jadar has received EU Strategic Project status and that the project remains under care and maintenance while the company manages legal requirements and local assets. The project highlights the broader challenge facing European lithium development: securing raw materials while also establishing processing capacity, infrastructure, employment opportunities, environmental monitoring systems and downstream industrial partnerships.
UK combines geothermal lithium and battery recycling
The United Kingdom is pursuing a different lithium strategy based on geothermal resources, historic mining areas and recycling infrastructure. Geothermal Engineering Ltd has begun lithium extraction from geothermal water at United Downs in Cornwall, where lithium concentrations in the fluid have reportedly exceeded 340 parts per million, among the highest concentrations recorded from a well to date.
The company plans to use £10 million in financing from ABN AMRO to expand direct lithium extraction capacity from 100 tonnes of lithium carbonate annually toward nearly 2,000 tonnes by 2028/29. The longer-term objective is to exceed 18,000 tonnes per year across multiple UK sites.
Battery recycling becomes part of lithium supply strategy
Battery recycling is emerging as another important component of Europe’s lithium security approach. Altilium is developing processing capacity in Plymouth to convert black mass from end-of-life electric vehicle batteries into materials suitable for battery manufacturing.
The company states that its technology can recover 95% of cathode materials and 99% of graphite. Its development plan includes progression from smaller validation facilities toward ACT 3, designed to process 24,000 electric vehicle batteries per year, and ACT 4, intended to handle gigafactory production scrap.
Recycling offers the potential to establish supply closer to automotive manufacturing centres while reducing dependence on imported processed materials. However, infrastructure must be developed before large volumes of battery waste become available.
Industrial recycling networks expand across Europe
BASF is also developing battery material and recycling capabilities through its European network. The company’s Schwarzheide site in Germany already includes black-mass production capacity, while cooperation with TSR provides access to a recycling network covering 190 centres across Europe.
The model combines collection, dismantling, battery discharge, black-mass production, refining and reintegration into cathode active materials. Such integrated systems are becoming increasingly important as Europe attempts to build a circular battery supply chain.
Lithium projects face stricter investment requirements
European lithium developments are advancing in a difficult market environment. Lithium prices have experienced significant volatility, Chinese processing capacity remains dominant, Western battery projects have faced delays and several gigafactory developments have been slowed or reassessed. Projects with uncertain permitting, weak offtake agreements or high energy costs face greater financing challenges.
The strongest developments are expected to be those capable of demonstrating integrated refining, reliable energy supply, strong environmental controls, industrial partnerships and the ability to consistently produce battery-grade materials at commercial scale. Europe’s lithium strategy is therefore moving from policy commitments toward execution. The success of the emerging supply chain will depend on projects progressing from strategic designation to operational production through mines, refineries, recycling facilities and industrial contracts capable of keeping lithium materials within the European value chain.
