Strategic expansion for Hydro batteries, acquires 12% stake in Lithium de France

With the purchase of a 12 per cent share in Lithium de France, Hydro Batteries expands strategically into environmentally friendly battery components. Arverne Group and Equinor Ventures are other Lithium de France investors.

Lithium de France is developing technology and processes to create lithium with a considerably smaller CO2 footprint than what is now commercially accessible while also extracting heat and lithium from geothermal brines. Lithium de France has obtained additional finance totalling EUR 44 million with this Series B investment. Arverne Group, Equinor Ventures, already shareholders, and Hydro, a new investor, will contribute to the capital increase.

"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.

Based on hot brines (salty water) found in geological formations several kilometres below the earth's surface, Lithium de France intends to construct geothermal projects in the Alsace area. The brines contain lithium, a vital raw ingredient used to manufacture batteries.

The business plans to use these hot brines to generate local, cost-effective, and sustainable heat from which they will extract low-carbon geothermal lithium to meet Europe's need for environmentally friendly battery components. The European battery sector is challenged to find raw materials with sustainably derived supply chains to enable the green transition. Hydro is dedicated to actively participating in this transformation.