Infinity Lithium Corporation has sealed a binding memorandum of understanding with Spanish energy firm Enalter to assess a renewable energy project that could drive down costs associated with the explorer’s in-development San José lithium project.
As part of the deal the company through its wholly-owned subsidiary, Extremadura New Energies, will seek to capitalise on the region’s sprawling alternative power prospects through solar, methane and green hydrogen operations.
Infinity is attempting to establish a lithium processing plant in the region and sees the facility as a crucial component in providing processed battery metal material to a host of European companies.
Infinity believes the corporate tie-up could allow it to reap a host of cost benefits whilst bolstering the project’s renewable electricity and green hydrogen requirements.
The program will begin with an initial scoping phase after which Extremadura New Energies and Enalter could launch a JV operation focused on the development of renewable energy.
Phase one of the MoU will see the pair evaluate the technical and economic feasibility of the project and seek to tie down a power purchase agreement to supply green energy to the San José lithium project.
Infinity Lithium Managing Director and CEO Ryan Parkin said:“The partnership with Extremadura’s pre-eminent and progressive company further reinforces the positive momentum and complementary opportunities aligned to San José following the initiation of the permitting process last month. Extremadura New Energies welcomes the opportunity to advance this complementary and mutually beneficial project in Extremadura in concert with the significant momentum at San José.”
Infinity says the renewable energy venture is aligned with its lithium production ambitions whilst fitting with global calls to decarbonise operations.
The company’s development drive is focused on the production of battery-grade lithium compound material from its gigantic 111 million tonne resource at 0.61 per cent lithium oxide at San José.
Infinity’s 75 per cent owned San José project is positioned near the city of Cáceres in the Extremadura region of Spain and has been hailed as one of the European Union’s largest JORC-compliant hard rock lithium deposit.
Plans to progress a processing plant near the project’s resource were shelved last year due to rising concerns by the nearby Cáceres township that the operation was too close to its border. Since then, the Perth-based company has made considerable strides in moving the projects toward the finish line with its activities over the past centred around establishing community support.
The company initially planned to extract the site’s lithium through an open pit mining operation however has since changed tact to recover the material through an underground mine to diminish environmental impacts and foster community support.
The company says the total project will cost about US$530 million to establish, with the plant speaking for roughly 85 per cent of the outlay.
Recent projections suggest the global demand for lithium could reach two million metric tons of lithium carbonate equivalent by 2030 – striking figures considering last year's global production from mining alone stood at 100,000 tonnes.
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