Europe’s effort to establish a domestic battery materials supply chain is increasingly centered on lithium chemical production, with several major projects moving beyond resource development into refining and conversion infrastructure.
A new generation of projects across Germany, France and Finland is targeting battery-grade lithium hydroxide output, reflecting the region’s objective of building processing capacity closer to automotive and battery manufacturing hubs. The developments involve a combination of hard-rock mining, geothermal brine extraction, refining and chemical conversion facilities supported by substantial capital investment.
Integrated Projects Target Lithium Hydroxide Output
Vulcan Energy Resources has reached financial close on a €2.2 billion funding package for its Lionheart Project in the Upper Rhine Valley between Germany and France.
The project is designed to produce approximately 24,000 tonnes per year of lithium hydroxide monohydrate while generating renewable heat and electricity from geothermal brines. The planned output is sufficient for an estimated 500,000 electric-vehicle batteries annually.
The development combines geothermal energy production, lithium extraction and downstream chemical processing within a single integrated operation. The project aims to supply lithium chemicals to European battery and automotive manufacturers from a regional source.
Finland Project Nears Completion
Sibanye-Stillwater’s Keliber Project in Finland continues to advance toward production, with the company reporting that construction and cold commissioning of the integrated operation remained on schedule for completion during the first quarter of 2026.
Total capital expenditure required to complete construction is estimated at approximately €783 million. The project is expected to produce around 15,000 tonnes per year of battery-grade lithium hydroxide monohydrate.
Alongside project development, Sibanye-Stillwater has sought support from the European Union as it prepares to ramp up what it describes as Europe’s first large-scale lithium mining and processing operation. According to Reuters, the company has requested consideration of measures including potential price protections or trade-related mechanisms in response to weak lithium prices and international competition.
France Backs Domestic Lithium Processing Capacity
In France, Imerys is advancing its EMILI Project, which has received support from the French government through a €50 million investment for a minority ownership position.
The project is designed to produce approximately 34,000 tonnes per year of lithium hydroxide and is expected to supply enough lithium for about 700,000 electric vehicles annually. Imerys has also redirected development priorities toward the French project, placing a lithium project in the United Kingdom on hold in order to focus resources on EMILI.
German Refining Capacity Expands
AMG Lithium represents a different approach to the lithium supply chain through standalone refining infrastructure rather than mine-integrated production.
The company opened its Bitterfeld-Wolfen refinery in Germany as the first battery-grade lithium hydroxide refinery in the European Union. The facility has planned production capacity of approximately 20,000 tonnes per year. Unlike projects linked directly to mining operations, the refinery is designed to process externally sourced feedstock and may also utilize recycled lithium materials.
Multiple Processing Models Emerge Across Europe
The projects illustrate several approaches to establishing regional lithium chemical production.
Vulcan Energy Resources is pursuing a geothermal brine-to-lithium-chemical model through the Lionheart development. Keliber combines mining and lithium hydroxide production within an integrated Finnish operation. Imerys is developing a government-backed hard-rock lithium project in France with downstream processing capacity. AMG Lithium is expanding refining infrastructure in Germany through a standalone conversion facility.
Each project is focused on producing battery-grade lithium chemicals, a critical component for electric-vehicle battery manufacturing and broader energy-transition supply chains. Lithium hydroxide production facilities require significant capital investment and depend on permitting, financing, reagent supply, power availability, customer qualification processes and long-term market demand. The current generation of European projects is advancing amid a market environment characterized by lithium price volatility and increasing competition across global battery material supply chains.
