Core Lithium Ltd (ASX:CXO) has been accepted as a member of the European Battery Alliance (EBA250), an organisation committed to driving a competitive and sustainable battery industry in Europe by 2025.
The EBA250 is an inclusive ecosystem for interested stakeholders across the European Union’s battery value chain and comprises parties that strive to collaborate on initiatives to promote sector growth.
It brings together more than 440 major players from the European Commission, interested EU countries, investment institutions and key industrial, innovation and academia stakeholders.
The EBA250’s ultimate goal is to create a competitive and sustainable battery industry in Europe within the next five years, to capitalise on opportunities and capture a new market that the alliance anticipates will one day grow to be worth about €250 billion (~A$400 billion) per year.
“Future demand for lithium is far-reaching and significant”
Core managing director Stephen Biggins said: “These new connections will provide further pathways for the company to grow its presence in the European market.
“The EBA250 is a unique meeting platform for industry participants and being a member will provide us with greater regulatory insights, market intelligence and all-important connections to business development contacts, as well as the Alliance’s funding and financial partners.
“To date, the Asian markets have been the critical offtake partners of lithium production from Australia; however, as Core looks towards beginning our exports in 2022, we aim to be producing for a diversified portfolio of partners.
“Europe is focused on building sophisticated capabilities across the entire battery value chain – from raw and active materials, through to cell manufacturing and machinery, battery packs systems, applications and recycling. It is a market emerging at just the right time for Core.
“The increased focus from the EU and their eagerness to work collaboratively with Core reminds us that the future demand for lithium is far-reaching and significant.”
Finniss Lithium Project
Core’s acceptance into the EBA250 follows the company’s recent signing of a nonbinding offtake term sheet (MOU) with Geneva-based Transamine Trading for the supply of 50,000 tonnes of lithium-rich spodumene concentrate a year for five years from its Finniss Lithium Project in the Northern Territory.
This MOU is in addition to Core’s existing binding offtake agreement with Yahua for 75,000 tonnes per annum.
Given its low start-up capital requirements, existing infrastructure and proximity to offshore transport services, the Finniss Lithium Project is well placed to meet the world’s growing demand for lithium batteries for electric vehicles and other renewable technologies that the world is gravitating towards.