The Aurora Project, a key initiative to establish a lithium conversion plant in Setúbal, Portugal, has been cancelled by Galp following the withdrawal of its original partner, Northvolt, in early 2024.
This decision puts on hold one of Europe’s largest planned lithium projects, which was designed to supply the battery industry for electric vehicles.
The project, launched in 2021 as a 50-50 joint venture between Galp and Northvolt, faced a major setback when Northvolt decided to halt its financial participation.
Since then, Galp sought to attract new international partners but was unsuccessful.
The inability to secure strategic collaborations, combined with current challenges, led Galp to conclude that the project was no longer feasible.
The Aurora Project envisioned the construction of a lithium conversion plant with an annual production capacity of 28,000 to 35,000 tonnes of battery-grade lithium hydroxide, sufficient for batteries powering over 700,000 electric vehicles per year.
The estimated investment was approximately €700 million, and the project was set to create 200 direct jobs and 3,000 indirect jobs in the region.
The plant was planned for the Sapec Bay Industrial Park in Setúbal, chosen for its logistical infrastructure and proximity to major users of by-products such as the cement and paper industries, as well as Portugal’s lithium reserves.
Progress and Planning
Before its cancellation, the project had completed engineering studies, licensing processes, and the assembly of a specialised technical team. The plans also included the use of green energy to reduce reliance on fossil fuels, enhancing the sustainability of the conversion process.
Aurora aimed to position Portugal as a key player in Europe’s battery supply chain. However, the cancellation highlights the challenges of attracting international investments and realising large-scale projects, despite Portugal’s significant natural resources and the growing demand for materials like lithium hydroxide.
Future of the Sector in Portugal
While the Aurora Project will not proceed, Portugal’s lithium reserves remain a strategic resource for the battery industry. Identifying new projects and partnerships will be essential to harness these resources efficiently.
For now, the termination of the Aurora Project represents a setback in Portugal’s ambitions to significantly contribute to the European battery market.
