Lithium extraction in the Upper Rhine Graben: Financial experts see potential for investments

Lithium extraction in the Upper Rhine Graben: Financial experts see potential for investments

According to a report by www.zeit.de, a plant for the production of lithium was opened in the Upper Rhine Graben. The company Vulcan Energy has opened a ton-scale lithium production facility in Landau. This plant is a preliminary stage of a commercial plant in which lithium chloride will be produced from 2026 and refined into lithium hydroxide in Frankfurt-Höchst.

According to Vulcan founder Horst Kreuter, an annual production of 24,000 tons is expected in the first phase of the project, which is enough to produce 500,000 car batteries per year. The costs for the constructed system amounted to around 40 million euros, and the investment volume for the first project phase including drilling is estimated at 1.4 billion euros. It is assumed that 40 percent of Europe's lithium needs and even 100 percent of Germany's needs could be met in the Upper Rhine Graben.

The opening of this facility is expected to have a significant impact on the market and financial industry. The increasing availability of lithium in Europe could make the region a major player in battery production and reduce dependence on imported lithium. This could lead to investors investing more in European companies active in lithium production and processing.

In addition, local production of lithium could lead to a reduction in prices for batteries and electric vehicles, as the shorter transport routes and lower production costs could have a positive impact on overall costs. This could have the potential to further boost market demand for electric vehicles and accelerate the transition to clean energy.

However, the impact on the market and financial industry could depend on various factors, including technological developments, government regulations and demand for electric vehicles. It is therefore important to closely monitor developments and analyze them carefully before making investment decisions.