BAKU, Azerbaijan, December 3. The European Investment Bank (EIB) has agreed to provide €250 million in financing for a major lithium project in Germany’s Upper Rhine Valley, Trend reports via the Bank.
The €2 billion initiative aims to develop an integrated, battery-quality lithium supply chain, helping to reduce Europe’s dependence on imported raw materials and supporting the decarbonisation of transport and industry.
The project will extract lithium from naturally heated brines while simultaneously generating renewable heat and power, reducing carbon emissions and surface impact compared with conventional extraction methods.
Phase One is expected to produce enough lithium hydroxide to supply roughly 500,000 electric vehicles annually. Commercial construction is planned to take around two and a half years, with production targeted to start in 2028.
Once operational, the project could meet about 12% of Europe’s projected lithium hydroxide demand by 2030, strengthening the EU’s domestic supply of critical raw materials and supporting wider climate and industrial objectives.
The financing is part of a broader support package involving multiple commercial lenders and export credit agencies, reinforcing Europe’s push toward sustainable, low-carbon industrial development.