Infinity Lithium's San José project poised to benefit from Europe's progress towards self-sufficient battery industry

Infinity Lithium Corporation Ltd (ASX:INF) (FRA:3PM) welcomes the key priorities for the EU battery value chain as outlined in the 5th Ministerial Meeting of the European Battery Alliance on March 12, 2021, which enhance the position of its San José Lithium Project in Spain. The meeting prioritised sustainable local sourcing and processing of raw materials used in batteries with the San José project in the spotlight. A key issue was public funding aligned to raw materials through coronavirus recovery and resilience plans and through the European Investment Bank (EIB). Strengthening local sourcing European Commission vice-president Maroš Šefčovič stated that it was essential for Member States to strengthen the sustainable local sourcing and processing of raw materials used in batteries, calling for greater mobilisation of public funding under COVID-19 national recovery and resilience plans for raw and advanced materials.  He also highlighted the involvement of the EIB’s involvement to de-risk raw materials projects and to leverage additional private funds. The European Commission will now launch a group that will focus on the sustainable extraction of raw materials and will publish a set of EU principles on sustainable raw materials and guidance on industrial actions. San José Lithium Project INF is well-placed to benefit from the renewed focus on de-risking raw materials projects, with the development of its San José Lithium Project in Spain expected to provide an essential component in the EU’s development of a vertically integrated lithium-ion battery supply chain. Availability of critical raw materials and the production of battery-grade lithium hydroxide in the EU is essential to ensure the long-term production of lithium-ion batteries for electric mobility and the transition of the burgeoning EU’s automotive industry to electric vehicle.  The proposed San José Project will produce battery-grade lithium chemicals from a mica feedstock that represents the EU’s second-largest JORC-compliant hard rock lithium deposit.  EIT InnoEnergy upskilling programs  The European Battery Alliance has also recognised the requirement to facilitate training programs and develop a specific set of skills within the value chain and has tasked EIT InnoEnergy to team up with interested Member States to develop country specific proposals.  Platforms for skill development and training in the regions complement the EBA250 academy for lithium-ion battery projects.  Notably, EIT InnoEnergy has demonstrated support for Infinity's San José with an investment to focus on sustainability through raw material extraction and refining in line with priorities highlighted in the 5th Ministerial Meeting of the European Battery Alliance.  Volkswagen Power Day  The company is set to benefit from the Spanish Government’s drive to become a leader in the sustainable automotive industry worldwide and welcomed priorities discussed at the recent Volkswagen AG (FRA:VOW) (OTCMKTS:VLKAF) Power Day focused on new strong partnerships and robust raw materials supplies to redesign the traditional supply chain. VW plans to invest in six battery factories in Europe providing 240 gigawatt hours of capacity by 2030, with these factories expected to consume around 200,000 tonnes per annum of battery grade LCE vs the global market for battery grade LCE units at around 300,000 tonnes per annum.  VW also outlined: Plans for 70% of VW car sales to be battery EVs by 2030, up from previous 35% target; Commitment to strategic partnerships upstream and downstream on the battery supply chain; Extending the scope to the entire supply chain with a high degree of local content; and Estimating an 80% of cell value in mining and chemistry. The San José Project is poised to become a supply hub for these factories with planned production of 15,000 tonnes per annum of lithium hydroxide for its 30-year project life. Progressing towards development The company recently completed a A$15 million placement, which provides the runway to:  Complete the San José feasibility study in quarter 4 of 2021 and produce first samples of batter grade lithium hydroxide; Advance permitting with the view to lodging mining and environmental applications in 2021; Build out technical and commercial capabilities; Progress discussions with offtake and strategic partners across all levels of the lithium-ion battery chain;  Commence the phase two pilot plant; and Introduce long-term institutional and international shareholders.