Galp's Decision on Lithium Plant
Portuguese energy company Galp has officially scrapped its plans for a lithium conversion plant in Setúbal, which was initially a 50:50 joint venture with Northvolt. The project aimed to produce up to 35,000 tonnes of battery-grade lithium hydroxide annually, with commercial operations expected to start in 2026.
Background of the Project
The partnership, known as Aurora, was formed in 2021. However, following Northvolt's financial troubles, including filing for Chapter 11 bankruptcy in the US and the resignation of CEO Peter Carlsson, Galp announced it could no longer continue with the venture.
Unsuccessful Search for New Partners
Despite efforts to find new international partners, Galp stated that they faced numerous challenges, including assembling a qualified team, conducting engineering studies, and preparing licensing processes. Ultimately, the lack of an international partner made it impossible to proceed.
Northvolt's Financial Struggles
Northvolt has been dealing with significant financial difficulties, including the cancellation of a billion-euro order from BMW due to delivery delays. This situation has led to a strategic review of operations, cost-cutting measures, and a reorganization of its management. Industry doubts about Northvolt's recovery are growing, with major shareholders like Volkswagen and Goldman Sachs writing off their investments in the company.
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