Germany aims for lithium independence with major reserves discovered

Germany has made a significant discovery in the Altmark Region of Northern Saxony-Anhalt, where Neptune Energy located 43 million tons of lithium carbonate equivalent (LCE). This resource is expected to have the capacity to supply battery materials for around 500,000 electric vehicles by the 2030s. The discovery comes at a time when Europe is looking to diminish its dependency on foreign sources, particularly from China, which currently dominates the lithium refining and battery supply chain. Furthermore, this initiative supports the European Union's objectives of developing domestic electric vehicle supply chains as part of the European Green Deal. The CEO of Neptune Energy, Andreas Scheck, emphasized the project’s potential to significantly contribute to both the German and European battery supply. The company has initiated various pilot tests for lithium extraction, focusing on environmentally friendly methods such as direct lithium extraction (DLE) from brine, avoiding negative environmental impacts associated with traditional mining practices. However, experts caution that the effectiveness of this discovery and its processing methods are crucial. Elaine Dezenski from the Foundation for the Defense of Democracies pointed out that it’s essential for Germany to address how the lithium will be processed, as most current processing occurs in China. Neptune Energy intends to process the lithium as close to the source as practical. This would ideally mean processing the lithium within Germany, and specifically in Saxony-Anhalt, to establish a regional supply chain for the mineral. The CEO remarked on the need for the country to build the necessary industrial capacities for midstream battery production, which includes the production of anodes, cathodes, and electrolytes. Germany has a robust base of mid-tier companies that cater to the automotive industry, which could support this development. In conclusion, while the discovery of lithium in Germany is a positive step towards achieving energy independence, the actualization of its potential heavily relies on the development of local processing facilities. If Germany can manage to process this lithium domestically, it would not only reduce reliance on China but also bolster its lithium supplychain and address ongoing geopolitical tensions related to mineral sourcing.