The 30.3% drop in the Infinity Litihium Sindey Stock Exchange, together with the slowdown in the lithium sector and the fall in demand for this mineral, casts doubt on the lithium mine megaproject in Cáceresso much so that the company itself has requested the delay of the aid that the State granted it through PERTE VEC III.
The project will involve a investment of 1,430 million euros, and of them the Government contributes 18.8 million euros to start the works before November 2028, if they do not start before that date, they would have to return the aid.
Given this situation, “the company had requested a extension of the term to take action under the terms of the subsidy as a conservative measure to take into account the rapidly deteriorating market and industry conditions, particularly in Europe. Something that was denied“The subsidy remains in force, but the company notes that there is a risk in the availability of the counterpart subsidy for the development of the project due mainly to macroeconomic effects,” according to a statement from Infinity Lithium.
In these moments There is more supply than demand “for this white gold”but the company believes there will continue to be strong medium and long-term demand for lithium produced in Europe as it continues its energy transition and values energy and industrial security.
Hence will continue betting on the development of the San José mine in Cáceresand for the project attached to the mine: a lithium hydroxide production plant.
But the company insists that it is necessary to update the project development start date and delivery times from previous announcements to reflect the global economy.
Infinity states in a statement that it focuses on position San José so that it is in the strongest position to take advantage of improved market conditions when the time comes to pursue its ambitions to lay the foundations for a comprehensive lithium-ion battery value chain in Europe.
Lithium prices have been significantly affected over the past 18 months due to new supplies coming online and reduced year-on-year growth in demand for lithium chemicals due to slower adoption of electric vehicles, particularly in the western markets. So it is so that the price was reduced by more than 80% from its peak in 2022, and the forecast is that this situation will continue until 2028.
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