A French industrial group facing delays at a major lithium project is urging the European Union to introduce rules requiring carmakers to source a portion of their lithium from within the bloc.
Imerys SA — which is developing lithium mining and refining facilities in France with an estimated cost of up to €1.8 billion ($2.1 billion) — has proposed that at least 20% of lithium used in European EV batteries come from EU-based mines by 2031, rising to 40% by 2036.
In a white paper submitted to the European Commission, the company, controlled by Groupe Bruxelles Lambert, argued that such a mandate would have only a marginal impact on vehicle production costs. CEO Alessandro Dazza said the policy is essential to give investors confidence:
“In such a key industry like automotive, Europe needs to be as independent as possible from the rest of the world. To launch a project of this magnitude, investors need a clear framework.”
The push comes as the EU intensifies efforts to reduce dependence on imported critical raw materials needed for electric cars, renewable energy infrastructure, and defence technologies. Concerns over China’s tightening grip on global supply chains continue to grow, while automakers and suppliers remain divided on local-content rules that could raise costs.
European lithium ventures have also been hit by weak prices due to slower-than-expected EV uptake and an oversupply from major producers such as Australia, Chile, and China. Projects across the region face uncertainty: Sibanye Stillwater continues to delay commissioning its Finland project, while Vulcan Energy Resources recently secured a A$3.9 billion ($2.6 billion) financing package for a geothermal-powered lithium operation in Germany.
Demand-side concerns persist too, as Germany leads calls to soften the EU’s planned 2035 ban on combustion-engine vehicles.
In July, Imerys pushed back the projected start of commercial lithium production at its flagship central France project by two years to 2030, citing lengthy permitting processes. Once operational, the mine could produce 34,000 tons of lithium hydroxide annually — enough for 700,000 EV batteries.
The company is in “advanced” talks to sell a minority stake in the French project and is also exploring lithium production in Southwest England. A pre-feasibility study for the Cornwall project is expected to be completed next year, Dazza said.