European Lithium, an explorer and developer focused on lithium in Austria, Ukraine, Ireland, and Australia, has announced plans to construct a lithium hydroxide plant in Saudi Arabia in partnership with Obeikan Investment Group. The plant, which will be established through a 50:50 joint venture, intends to process spodumene concentrate from the Wolfsberg Lithium Project in Austria.
With the shareholder agreement in place, the newly created joint venture company, Arabian New Energy, will have the opportunity to purchase lithium spodumene concentrate from Wolfsberg’s Zone One at a discounted price, within a specified price range. All of this hinges on the completion of the final agreements.
With the completion of all necessary agreements, a development committee will be created to foster a collaborative approach to making key decisions regarding the plant’s development.
Arabian New Energy will have the opportunity to purchase lithium spodumene concentrate from Wolfsberg’s Zone One at a discounted price
As soon as Critical Metals Corp, in which European Lithium has an 83.03% ownership, finalizes the deed of assignment and shareholders’ agreement, both contracts will be legally binding.
Executive Chairperson Tony Sage says the company now has two partners to ensure its ambitions are fulfilled to become the first European producers of spodumene and hydroxide.
Prior to this, the company had successfully secured a substantial investment of US$15 million from BMW, a major player in the German car manufacturing industry.
“Now, after these key milestones have been achieved, the next steps become a lot easier,” Sage says. “Over the next two quarters, we expect to finalise the updated Definitive Feasibility Study on the now separated projects and secure the necessary funding to commence construction.
“The board of the newly formed Arabian New Energy will appoint a leading ECPM to oversee the construction of the hydroxide plant. The funding for the project will be organised from within Saudi Arabia.”
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