Portuguese energy company Galp has officially scrapped its plan to construct the Aurora lithium refinery after failing to secure a new partner to replace Swedish battery manufacturer Northvolt.
The project, initially launched as a 50-50 joint venture with Northvolt in November 2021, was intended to establish a lithium processing facility in Setúbal, Portugal.
However, Northvolt exited the partnership in early 2024, leaving Galp without a collaborator for the €1 billion ($1.05 billion) investment.
The Aurora refinery, originally set to commence operations in early 2026, encountered delays due to its technical complexity and uncertainty surrounding funding.
Additionally, a decline in lithium prices driven by oversupply from China further undermined the project’s viability.
Northvolt, heralded as Europe’s leading electric vehicle battery innovator, filed for Chapter 11 bankruptcy protection last week in the United States.
The move followed unsuccessful negotiations with investors and creditors, including Volkswagen and Goldman Sachs, for critical funding.
Galp’s decision to halt the Aurora project underscores the challenges facing the European lithium processing and EV battery industries amidst fluctuating market conditions and financial hurdles.
