Portuguese energy company Galp announced that it has canceled its plan to build the Aurora lithium refinery in Setúbal, Portugal, after failing to secure a new partner following the departure of Northvolt. Northvolt, a Swedish company specializing in electric vehicle batteries, had been a 50-50 partner in the joint venture established in November 2021. However, in early 2024, Northvolt pulled out of the project, leaving Galp to search for a replacement partner.
The project, initially estimated to cost over 1 billion euros ($1.05 billion), was designed to process lithium for use in electric vehicle batteries. It had been facing delays due to its complexity and ongoing funding challenges. The decline in lithium prices, driven by an oversupply from China, further diminished the project’s appeal.
Northvolt, once considered Europe’s leading electric vehicle battery manufacturer, recently filed for U.S. Chapter 11 bankruptcy protection. The company struggled to secure funding despite negotiations with major investors, including Volkswagen and Goldman Sachs.
