exclusive: portugal to launch tender of lithium exploration licences this year - home energy storage

LISBON (Reuters)-
Portugal intends to launch a lithium exploration permit tender by the end of this year, and plans to become the largest supplier of electric vehicle battery metal in Europe.
In an interview with Reuters, Energy Minister Jorge sigero Sarch has developed plans to significantly increase exploration and production to meet the growth of sales of electric vehicles, global demand for lithium is expected to surge.
He did not set the date of the tender, but said that the permit for exploration of commercially viable lithium would cover several areas of the country and he believed that foreign bidders would be interested.
He said the government will look for a commitment to invest in local refining and battery manufacturing in the tender.
"We intend to launch the tender by the end of the year," he said in the elegant 18th-century palace in the center of Lisbon, capital.
"There will be a variety of different areas to offer.
Portugal is sixth in the world.
Europe's largest producer of lithium.
But its miners are almost only selling to the ceramic industry, and they are not ready to produce higher products until now
Lithium grade for electric vehicles.
Interest in lithium mining has been spurred by the expected growth in electric vehicle sales, which are cheaper and more eco-friendly than other vehicles.
But Portugal, led by China, will face fierce global competition, and warnings about bubbles and oversupply have pushed lithium prices down from record highs this year.
Despite potential obstacles, Seguro Sanches remains optimistic, especially after recent discoveries of lithium that may increase its reserves.
"Portugal is one of the countries with the greatest potential for lithium production," he said . ".
"We had contact (with companies)on all levels . . .
We are very optimistic about the number of competitors.
A government study last year identified 2,500 square kilometers (
9,650 square miles)
Areas that may contain lithium
Contains minerals.
It listed 11 regions in central and northern Portugal and identified potential investments in five of the most attractive regions as three.
3 billion euros ($3. 88 billion)
Sanches said the government has received more than 40 applications for exploration, and miners in Australia, Canada and the United States have expressed interest in obtaining permits.
He said the government has also been talking about joining with automakers, especially those already producing traditional cars in Portugal.
But he declined to give more details and the name of any company that has shown interest so far.
Volkswagen has a large factory in Portugal.
German companies planning to start mass production
The market output of electric vehicles in the next few years declined to say whether Portugal considered this in its plans for electric vehicles.
But it says it is in discussions with suppliers on how to ensure long-term cooperation
Provide long-term and sustainable supply of raw materials for its electronic products
Monitoring capacity and needs.
Global demand for lithium
White metal also used to make lithium-
In 2019, ion batteries used in mobile phones and laptops will more than double
According to CRU Group, a metal consultancy, 2025.
But the European Union is worried that its carmakers will be excessive.
They rely on imports because they produce more electric cars.
Asia dominates the supply of batteries, using refined lithium made from concentrate sold by miners in Chile and Australia.
So far, there are no facilities in Europe to extract lithium into batteries.
Grade purity, no big-
Car battery production scale.
According to analyst estimates, the European automotive battery value chain may be worth 250 billion euros ($290 billion)
By 2025, the European Commission, the EU executive body, launched the European Union of companies last year, aiming to establish a 10-
20 large battery factories
Sweden's northworth and Germany's thunder already have plans for a lot of lithium.
Some of Europe's leading automakers have reached agreements with Asian suppliers set up in Hungary and Poland.
Portugal could compete for the battery plant planned by the four companies.
The European battery alliance of Saft, Germany Siemens and Mantz, Belgium Solvay, or some Asian players who want to produce in Europe.
A country of about 10 people.
In 2017, 3 million people in southwest Europe mined 400 tons of lithium and became the largest producer of lithium in Europe.
Portugal's known reserves of 60,000 tons of lithium are 0.
According to the U. S. , it accounts for 4% of the world's total. S.
Geological Survey.
If confirmed as a reserve, recent findings may increase this share by nearly 2%.
Even so, Portugal may soon face competition from other European countries (Finland or Serbia), both of which are struggling to develop lithium reserves.
In the tender, the bidder will pay the mining royalties to the state, which the government will consider when selecting the winner.
Serguro Sanches said, but the decisive factor will be the preparation of the bidder to establish an electrolytic refining and battery plant.
In addition to cars, the government also sees household energy storage batteries as a target for increasing solar power generation.
Seguro Sanches says regulatory stability will be an important selling point and nothing will change for companies that have already obtained licenses.
Portugal previously granted a license for a case. by-
Case basis for miners of quartz and Changshi mines, a mineral used for glass manufacturing and ceramics, such as London-
The city of Savannah Resources Corporation and the Portuguese miner Lusorecursos.
Both of them plan to make batteries now.
Their main goal is to rate lithium.
Savannah raised lithium this month.
The ore resources of Barroso in northern Portugal are estimated at 44%, with a potential increase of 45 to 75%.
The minerals found, lithium pyroxene and saline, are the source of lithium for most batteries.
Savannah aims to supply lithium refineries overseas, at least before construction in Europe.
It is estimated that the project will cost 0. 11 billion euros and the final decision will be made in the medium term. 2019.
"We are very pleased with the level of lithium support we have received extensively.
"It does have the potential to create a new industry in Portugal," said CEO David Archer . ".
Although the cost of extracting lithium from brines, which has become a major industry in Chile, is higher than the cost of mining lithium, Savannah believes that it can successfully compete with Australian miners who sell lithium to China
But Archer warned that there is still a "huge risk", as evidenced by the sharp drop in prices from record highs this year due to oversupply.
Lusorecursos wants to build one.
The plant refined its approximately 30 million tons of pet lithium ore, mainly used in glass and ceramics, into batteries
Ricardo Pinheiro, chief executive of the company, said that "the added value is therefore left at home ".
Lusorecursos is also expected to attract help from foreign partners to 400-million-
The euro project, he said. ($1 = 0. 8503 euros)