Galp has decided not to proceed with the construction of the Aurora project (earlier post). Originally a 50/50 partnership between Galp and Northvolt, the latter communicated to Galp in early 2024 its decision to cease investing in Aurora. Northvolt recently filed for Chapter 11 in the US. (Earlier post.)

Aurora has been working since 2021 to establish a lithium conversion plant in Setúbal, aiming to supply the battery industry by leveraging Portugal’s lithium reserves. The plant, would have been one of Europe’s largest, with an initial annual production capacity between 28,000 and 35,000 tons of battery-grade lithium hydroxide, which was expected to grow significantly by 2030. The plant will use a proven conversion process, leveraging recent process improvements and technologies to increase its sustainability and efficiency.

Since that notification, Galp has sought to identify new international partners, but without success.

Despite significant efforts, which included assembling a qualified team, conducting engineering studies, preparing licensing processes, and seeking incentives and funding, the current context and the inability to count on an international partner make it impossible to continue with the project, Galp said.

Separately, Benchmark reported that more than 312 gigawatt hours (GWh) of battery gigafactory capacity has been cancelled in 2024, substantially higher than preceding years. These cancellations have been primarily from less experienced Tier 3 battery manufacturers operating in China which have struggled with low demand and a highly competitive market.