Europe’s ambition to decarbonize its economy and build out a world-class electric vehicle (EV) industry faces a fundamental constraint in lithium. The white metal is the backbone of EV batteries, grid-scale energy storage, and the continent’s climate goals.
Yet Europe currently produces almost none of its own supply, relying on imports for nearly all of its needs, mainly from China, Chile, and Australia.
The European Commission has estimated that demand will surge twelvefold by 2030, and as much as twenty-one times higher by 2050. This trend leaves the European Union (EU) vulnerable to supply shocks, price volatility, and geopolitical pressure.
Brussels’ response has been the Critical Raw Materials Act. The law requires at least 10% of Europe’s lithium demand to be sourced domestically by 2030. It caps reliance on any single country at 65%.
Given Europe’s potential—reserves across Portugal, Spain, Serbia, and the Czech Republic, the supplies could theoretically cover much more. But moving from geology to production has proven difficult.
Vulcan Energy (OTCPK: VULNF), an Australian-German venture, is pursuing a solution in Germany. On Wednesday, the firm received a permit to build a lithium hydroxide plant in Frankfurt utilizing innovative extraction methods.
“It’s going to be very hard for the EU to develop primary sources of lithium domestically,” said Kwasi Ampofo, head of metals and mining at BloombergNEF. “Not impossible, but very hard.”
The US, under the Trump administration, has started initiatives to reduce its dependency on China for rare earths and critical materials. President Donald Trump signed an Executive Order in March to prioritize domestic mining and processing.
The order streamlined federal permitting for mineral projects, reducing timelines from years to months, with a focus on rare earths, lithium, cobalt, and other minerals for national security. It aims to make the US the leading producer and processor of non-fuel minerals while creating jobs and reducing foreign reliance.
Portugal’s Potential and Pushback
In Europe, Portugal has the largest known reserves, concentrated in the northern regions of Vila Real and Montalegre.
British-listed Savannah Resources (OTCPK: SAVNF) is advancing plans at Mina do Barroso, which it hopes will become the first major European lithium mine. Company …