Hydro Acquires 12% Stake in Lithium de France for Sustainable Battery Material Expansion

Hydro Acquires 12% Stake in Lithium de France for Sustainable Battery Material Expansion

(IN BRIEF) Norwegian company Hydro has acquired a 12% stake in Lithium de France as part of its strategic expansion in sustainable battery materials. Lithium de France is developing technology and methods to extract heat and lithium from geothermal brines, which has a lower CO2 footprint than commercially available lithium. The company secured €44m ($48m) in Series B financing, with the capital increase subscribed by current shareholders Arverne Group and Equinor Ventures, as well as Hydro as a new investor. The company plans to develop geothermal projects in the Alsace region to extract low-carbon geothermal lithium, helping to supply Europe’s need for sustainable battery materials.

(PRESS RELEASE) OSLO, 15-Mar-2023 — /EuropaWire/ — Lithium de France develops technology and methods to extract heat and lithium from geothermal brines, and produce lithium with significantly lower CO2 footprint than is currently commercially available. Lithium de France has secured additional funding of EUR 44 million in this Series B financing. The capital increase will be subscribed by its current shareholders, Arverne Group and Equinor Ventures, and by Hydro as a new investor.

“Lithium is a key ingredient in all types of rechargeable batteries and the demand for lithium-ion batteries is continuing to surpass earlier stated predictions. At the same time, there is an increasing concern about lithium supply, and the footprint of existing mining and production processes. We believe that direct lithium extraction (DLE) is the most promising way for Europe to develop sustainable local production of lithium,” says Head of Hydro Batteries, Morten Halleraker.

Lithium de France plans to develop geothermal projects in the Alsace region, based on hot brines (salty water) located in geological formations several kilometers into the earth. The brines contain lithium, a critical raw material in battery production. The company aims to utilize these hot brines for local, sustainable and economical heat production, on which they will extract low-carbon geothermal lithium, supplying Europe’s need for sustainable battery materials.

“This is a good fit with Hydro’s capabilities and sustainable battery materials agenda, with a good value potential towards 2030,” says Halleraker.

Access to sustainably sourced raw materials to support the green transition is a key challenge for the European battery industry and Hydro is committed to play an active role in this transition.

About Hydro Batteries

The Batteries business unit in Hydro Energy aims to develop leading sustainable battery businesses in Europe, by active investments in the battery value chain. Since 2017, Hydro Batteries has engaged in selected ventures within the battery value chain. Batteries targets growth within sustainable battery materials by leveraging Hydro’s capabilities. Industrializing and scaling innovative Circular Solutions and Anode Materials are the two main pillars of this strategy. Current investments include Hydrovolt, Vianode, Corvus and Northvolt.

About Lithium de France

Lithium de France is the first independent French operator of geothermal heat and lithium. Created in 2020, its mission is to accelerate the energy transition by supplying heat to businesses and local authorities, and producing lithium for electric mobility.

It is a pioneer in this new innovative and environmentally friendly French sector. Its headquarters is in Bischwiller in Northern Alsace.

Media Contact:

Line Haugetraa
Head of Investor Relations
Tel: +47 41406376
Email: line.haugetraa@hydro.com

Tor-Martin Torbergsen
Communication Manager, Hydro Energy
Tel: +47 45 46 98 06
Email: Tor-Martin.Torbergsen@hydro.com

SOURCE: Norsk Hydro ASA