Infinity Lithium Corporation Ltd (ASX:INF) has soared on news that €18.8 million (A$31 million) in grant funding has been awarded to Tecnología Extremeña del Litio (TEL) to advance the San José Lithium Project in Spain — a major milestone for San José and precedent for future grant funding opportunities.
The Spanish Government’s Ministry of Industry, Trade and Tourism awarded the funds under PERTE VEC II which provides aid for industrial projects for the production of electric vehicles, including their essential components and essential raw materials.
This grant to support San José — the largest grant to a lithium mining/processing asset and the sixth-largest total grant announced under this program — demonstrates the government’s commitment to the project.
Shares have been as much as 88.24% higher in ASX trading this morning to A$0.16.
Infinity’s 75%-owned proposed San José Lithium Project is a fully integrated industrial project focused on the production of battery-grade lithium chemicals from a mica feedstock, and it represents the EU’s second-largest JORC-compliant hard rock lithium deposit.
The successful grant funding commitment to San José follows the release of an updated scoping study last week.
"A significant milestone"
Infinity managing director and CEO Ryan Parkin said: “We are very pleased with the significant funding support awarded for San José. This is a significant milestone for both the company and the project.
"The company welcomes the government’s commitment to recognising the critical importance of lithium and its endorsement of the project.
“These first funding commitments for the processing of critical raw materials in Spain places the company at the forefront of future funding pathways at both the national and European level.”
A new industrial revolution
PERTE VEC II has successfully awarded funds for equipment and installations to projects representing multiple segments of the electric vehicle battery chain, and it has reinforced the country’s ambitions to maintain a leading position in the EU for the development of a supply chain from locally available critical raw materials through to the manufacture of electric vehicles.
Other successful applicants in the final assessment included Ford Espana, Renault (EPA:RENA) Espana, Stellantis Espana, Seat S.A. and Envision AESC Spain.
The recalibration of the automotive sector as supply chains move to the mass adoption of electric vehicles is critical to Spain — the automotive sector represents around 10% of the nation’s GDP and 18% of its exports.
Under PERTE VEC II, the Spanish government has committed a total of €190.4 million, in addition to other grant funding previously announced, bringing a total of €528.7 million across 26 projects to advance the national electric vehicle battery chain.
Acting Minister of Industry, Trade and Tourism Héctor Gómez said: "We are proud of the success achieved in this call, the result of leadership in the new industrial revolution, dialogue with the sector and understanding of the cultural change that is taking place, what is producing in our society. As I promised at the beginning of my time at the head of the Ministry, we have fulfilled.
“Spain is extremely competitive at an energy level, with a wide deployment of renewable energies that makes the price of electricity very attractive to international companies. We are convinced that, thanks to the contact and intense public-private collaboration, PERTE VEC III will be as successful as the second one.”