Company Overview - Galp Energia SGPS SA has abandoned plans to construct the Aurora lithium refinery in Setubal, Portugal, due to the inability to find a new partner after Northvolt AB withdrew from the project [1][2] - The total investment required for the Aurora project is estimated to exceed €1 billion [2] Partnership Details - Galp and Northvolt formed a 50-50 joint venture in 2021 for the lithium processing facility, but Northvolt announced it would not invest in early 2024, leaving Galp without a partner [2] - The refinery was initially expected to commence commercial operations by early 2026, but faced setbacks including funding uncertainty and project complexity [3] Market Dynamics - The project became unattractive due to the inability to secure a new partner and downward pressure on lithium prices caused by oversupply from the Chinese market [4] - The Aurora lithium refinery was intended to produce lithium hydroxide, essential for lithium-ion batteries [4] Northvolt's Financial Situation - Northvolt AB has filed for U.S. Chapter 11 bankruptcy protection after failing to secure necessary funding, indicating significant financial troubles [5]
GLPEY Scraps Lithium Refinery Project Following Northvolt's Withdrawal