French industrial-minerals leader Imerys has unveiled plans for a €1.8 billion lithium project in France, a move that could significantly reshape Europe’s electric-vehicle (EV) battery ecosystem. Alongside the announcement, the company sent a pointed message to Brussels: domestic lithium production will only thrive if the EU enforces a minimum European content requirement in EV supply chains.
Europe’s Lithium Challenge
Despite initiatives like the Critical Raw Materials Act and the REsourceEU plan, Europe remains heavily reliant on imported lithium, particularly refined lithium from China. Without stronger policy support, domestic projects risk being uncompetitive against foreign suppliers, jeopardising Europe’s ambition to secure battery sovereignty.
Imerys’ project, located near the French Massif Central, is among Europe’s largest planned lithium developments. It has the potential to supply hundreds of thousands of EVs annually, significantly reducing dependency on external sources. French political leaders back the project, viewing domestic lithium as essential to industrial sovereignty and strategic autonomy.
Economic Pressures and the Case for European Content
While the project is ambitious, economics remain challenging. Global lithium prices are volatile, and Chinese producers dominate the market through established supply chains, lower costs, and state support. Without guaranteed market access, European lithium developers face difficulty securing long-term offtake agreements at competitive prices.
Imerys argues that a “European content” rule could address this gap. By requiring a minimum percentage of battery or EV value to come from European-mined or European-refined lithium, the EU could incentivize investment and protect domestic producers. Similar policies exist in the United States: the Inflation Reduction Act ties tax incentives to domestic content, successfully spurring investment in US-based lithium and battery manufacturing.
Environmental and Social Considerations
Mining in Europe faces heightened scrutiny over environmental impact and local opposition. Imerys emphasises that its project will employ modern mining techniques and adhere to strict European environmental standards. Nonetheless, community engagement and regulatory compliance will play a critical role in permitting timelines and public acceptance.
Strategic Implications for Europe
Imerys’ announcement signals a broader shift: Europe is beginning to industrialise the upstream segment of its battery supply chain. However, success hinges on coordinated policy, predictable regulation, and market incentives. Without these, Europe risks building gigafactories dependent on imported materials, perpetuating the very vulnerabilities it seeks to overcome.
As Imerys CEO highlighted, the message is clear: to achieve a sovereign battery industry, Europe must ensure that domestic lithium is not only mined, but actively used in European EVs and batteries.
