Portuguese oil and gas giant Galp has scrapped its plans for Europe’s largest lithium plant. The project was initially conceived of as a 50/50 joint venture with Northvolt, the Swedish gigafactory manufacturer that filed for Chapter 11 bankruptcy in the US last week.
Northvolt told Galp earlier this year it would no longer be investing in the project, known as Aurora, which was first announced in 2021. Galp said in a statement it had sought to identify new international partners, but without success.
Lithium is a crucial component of EV batteries and manufacturers around the world have fought to secure their supply.
The plant was originally aiming to process 32k tonnes of battery-ready lithium hydroxide a year, enough to produce the batteries needed to replace 400k combustion vehicles, annually, from 2026. Northvolt had estimated the project would cost €700m.
In September, Sifted reported the project was two years behind schedule. At that point, Northvolt declined to comment on whether it was still involved, but Galp said it remained committed to the project.
“The current context and the inability to count on an international partner make it impossible to continue with the project,” Galp said in a statement.
The project had aimed to secure funding through the European Union’s Recovery and Resilience Plan (RRP) but, because the timelines for Aurora had been pushed back, it withdrew its request for that funding. The RRP only covers projects that will enter production by the end of 2026. It was then aiming to secure financing through the European Investment Bank (EIB).
