Galp and Northvolt have selected the port city of Setúbal as the location for their Aurora lithium conversion plant, which aims to become a steppingstone for the development of an integrated lithium battery value chain in Europe.

The plant will be one of Europe’s largest and most sustainable, with expected production start at year-end 2025. It is set to have an initial annual production capacity between 28,000 and 35,000 tons of battery-grade lithium hydroxide – a critical material required by the lithium-ion battery manufacturing industry, which is expected to grow significantly by 2030. The plant will use a proven conversion process, leveraging recent process improvements and technologies to increase its sustainability and efficiency.

It is expected that around €700 million will be invested into the project, which will create around 200 direct and 3,000 indirect jobs.

A key milstone on the road towards building up a full battery ecosystem in Europe

Carl-Erik Lagercrantz, CEO of Vargas and Chairman of Northvolt, comments:

‍Northvolt strives for no less than making oil history. And to achieve this, a lot of batteries will be needed. Galp’s and Northvolt’s establishment in Setúbal marks a key milestone for Europe on the road towards building up a full battery ecosystem on the continent, as well as demonstrating a sustainable approach to the lithium conversion process.