EU does not classify Erzgebirge lithium as strategic

Zinnwald Lithium GmbH in the Ore Mountains has not been classified as a strategic project despite the new EU law on handling critical raw materials (Critical Raw Materials Act). "Of course we would have liked to have been selected as a strategic project," said Managing Director Marko Uhlig. However, an analysis had shown that such recognition would not currently bring any direct advantages in terms of financing or approval procedures.

Lithium is considered a key raw material for the production of batteries and other high-tech products. The ore metal can be found in the batteries of electric cars. Zinnwald Lithium GmbH plans to produce 15,000 tons of battery-grade lithium hydroxide annually by mining the raw material. This would cover the annual demand for one million batteries for average-sized electric cars.

"EU decision changes nothing"

"The decision does not change the fundamentals of our plans," emphasized Uhlig. The European battery supply chain is still underdeveloped and the demand for lithium will continue to rise. "Irrespective of the EU's decision, the Free State of Saxony has already classified our project as strategically important for the federal state." German Chancellor Olaf Scholz (SPD) also emphasized the importance of the project during several visits last year.

In its assessment, the EU nevertheless attested to the project's great potential for the future supply of lithium in Europe. Despite not being classified as a strategic project, the company is confident: as one of the few sustainable lithium projects in Europe that can be realized in the short term, it has a significant resource base - and can thus make a decisive contribution to European raw material security.

The European Union's Critical Raw Materials Act is intended to ensure that the rare earths and raw materials required for semiconductor production are available in sufficient quantities in Europe.