AFRICAN lithium developer, Prospect Resources Ltd (Prospect), which is spearheading the Arcadia Lithium project, has been accepted into the European Raw Material Alliance (ERMA) as a primary raw material partner.
BY MTHANDAZO NYONI
ERMA is a new initiative to increase raw material resilience for a greener Europe.
The initiative aims to make Europe economically more resilient by diversifying its supply chains, creating jobs, attracting investments to the raw materials value chain, fostering innovation, training young talent and contributing to the best enabling framework for raw materials worldwide.
Prospect said it planned to accelerate its engagement with European stakeholders and to participate in ERMA’s development strategy for critical materials.
The offtake agreement with Sibelco NV is a practical step to improve Europe’s critical material resilience, it said.
Prospect managing director Sam Hosack said the lithium developer was continuing to build its position in Europe with investors, customers and supply chains.
“Europe’s growing demand for both battery and glass and ceramics markets, places Prospect in a prime position to engage with European stakeholders,” he said.
“Demand for critical raw materials is going to rise steadily; especially given that the green energy transition is accelerating with lithium at the front and centre. The lithium market is showing signs of a resurgence driven by increases in demand, presenting an opportunity for Prospect to commence production in robust market conditions,” Hosack said.
The new alliance has been established in recognition of the critical importance of raw materials to the EU’s security, sustainability and industrial leadership.
If Europe is to deliver a green deal, a digital transition and remain a leader in future technologies, it faces a significant increase in demand for critical raw materials.
The ERMA will identify barriers, opportunities and investment cases to build capacity at all stages of the raw materials value chain, from mining to waste recovery.
The alliance will also focus on increasing EU’s resilience in the rare earths and expanding to address other critical and strategic raw material needs, such as lithium, recently added to the EU’s critical material list with other materials for Energy Storage and Conversion.