A Dutch industrial consortium has launched a €3.6 million pilot project aimed at addressing one of the biggest weaknesses in Europe’s battery supply chain — the limited ability to refine lithium into the high-purity chemicals required for electric vehicle batteries. Led by chemicals producer Nobian, the three-year LiSA project will investigate whether lithium recovered from European geothermal resources and spent batteries can be converted into battery-grade lithium materials through a lower-carbon and circular production process.
The initiative brings together Nobian, recycling company Back to Battery, the University of Twente, engineering company Demcon Suster, and the Institute for Sustainable Process Technology (ISPT), which is coordinating the programme and supporting knowledge transfer across Dutch industry.
The project has received €2 million in government funding through the Dutch TKI Energy programme, while the remaining financing will come from consortium members. Although relatively small in financial terms, LiSA targets a critical bottleneck in Europe’s ambitions to build a more independent lithium supply chain.
Battery-grade lithium processing remains Europe’s weak point
Europe has attracted major investments into battery factories, recycling facilities and potential lithium mining projects, but the continent still lacks sufficient capacity to convert lithium-bearing materials into the refined products needed by cathode and battery-cell manufacturers. The most important materials include lithium hydroxide monohydrate and lithium carbonate, which must meet extremely strict purity requirements before entering battery production.
The LiSA project will test whether lithium from European sources, including geothermal brines and recycled batteries, can be processed using Nobian’s patented salt chemistry and crystallisation technology.
According to project partners, the technology could deliver:
- around 50% lower energy consumption compared with conventional refining methods;
- approximately 50% lower carbon dioxide emissions;
- reduced water usage;
- lower waste generation;
- reduced dependence on imported chemical reagents.
Circular lithium refining model aims to reduce costs and emissions
The proposed LiSA process begins with a lithium chloride solution. The solution is combined with caustic soda and processed through two crystallisation stages, separating lithium hydroxide from sodium chloride.
Instead of treating sodium chloride as waste, the process returns it to Nobian’s existing chlor-alkali operations. Through electrolysis, recovered salt is converted back into caustic soda, which can then be reused in lithium refining.
This creates a closed-loop chemical system where materials continuously circulate inside the production process. Unlike conventional refining plants, where chemicals are purchased, consumed and disposed of, LiSA aims to minimise external inputs and reduce waste streams. The commercial advantage could extend beyond sustainability. Lower consumption of reagents, reduced waste treatment costs and improved resource efficiency could help European lithium refining compete globally.
Existing chemical infrastructure could accelerate European lithium production
Nobian’s participation gives LiSA access to more than 100 years of experience in salt production, electrochemistry and chlor-alkali technology. The company operates industrial facilities across the Netherlands, Germany and Denmark, employing approximately 1,600 people.
These existing industrial assets could provide an important advantage for future lithium-processing projects. Europe may not need to develop every part of its lithium supply chain through entirely new facilities. Existing chemical clusters already provide:
- industrial electricity connections;
- water treatment systems;
- chemical handling infrastructure;
- laboratories and research facilities;
- experienced engineering teams;
- established industrial permitting frameworks.
Using existing infrastructure could reduce both capital costs and project development timelines.
Pilot will test recycled batteries and geothermal lithium sources
A key feature of LiSA is its ability to process different lithium feedstocks. Back to Battery will provide lithium-containing materials recovered from end-of-life batteries, allowing researchers to test secondary raw materials alongside primary lithium sources. At the same time, the project will examine lithium from geothermal brines, a technology attracting increasing attention across Europe. Geothermal lithium projects aim to extract lithium from underground saltwater resources while potentially producing renewable heat or electricity.
Compared with traditional mining, geothermal approaches could offer:
- smaller surface impacts;
- locally sourced lithium supply;
- integration with renewable energy systems.
Commercial success depends on extraction efficiency, reservoir conditions, chemical composition and access to nearby refining capacity.
Lithium purity will determine commercial success
Producing battery-grade lithium is technically challenging.
Geothermal brines and recycled battery materials often contain impurities such as:
- sodium;
- potassium;
- calcium;
- magnesium;
- boron;
- iron.
Even small amounts of contaminants can affect crystallisation and prevent lithium products from meeting battery industry specifications.
The LiSA pilot will analyse how different feedstocks influence:
- pretreatment requirements;
- process stability;
- equipment corrosion;
- filtration performance;
- crystallisation efficiency;
- final product quality.
The results will determine whether the technology can move from pilot testing to a commercial demonstration plant.
Investors will focus on economics, not only environmental benefits
While lower emissions are an important advantage, commercial investors will require detailed operating data before supporting large-scale deployment.
Future assessments will need to verify:
- lithium recovery rates;
- product yield;
- energy consumption per tonne;
- operating reliability;
- reagent balance;
- water requirements;
- waste volumes;
- capital investment needs.
A commercial refinery would also require:
- long-term feedstock agreements;
- customer contracts;
- financing structures;
- construction plans;
- battery-material offtake partnerships.
The lithium market environment makes these factors increasingly important. After reaching record prices during the 2022–2023 supply shortage, lithium prices declined as new supply entered the market and electric vehicle growth slowed in several regions. This has increased pressure on higher-cost projects and made investors more selective. Technologies such as LiSA must therefore demonstrate a structural cost advantage, not simply depend on high commodity prices.
Europe remains heavily dependent on imported lithium
Europe’s dependence on foreign lithium supply remains a major strategic concern. In 2025, EU lithium carbonate imports fell to around 8,200 tonnes, compared with approximately 15,000 tonnes in 2019. The average import price dropped from a peak of around €30.6 per kilogram in 2023 to approximately €11.6 per kilogram.
Supply remains concentrated, with:
- Chile accounting for around 70% of EU lithium carbonate imports by value;
- Argentina supplying about 11%;
- the United States around 7%.
The figures highlight Europe’s continued exposure to external suppliers. EU lithium demand is expected to increase significantly, reaching approximately 58,000 tonnes annually by 2030. Current European production represents less than 0.1% of global mined lithium supply, while domestic refining capacity remains limited.
LiSA supports EU critical raw materials ambitions
The European Union has identified lithium as a key strategic raw material under the Critical Raw Materials Act.
The regulation sets targets for 2030, including:
- 10% domestic extraction of strategic raw materials;
- 40% processing capacity within Europe;
- 25% recycling contribution;
- limiting dependence on any single third country to 65% of supply.
LiSA directly supports these objectives by focusing on processing, recycling and circular production.
The project does not rely on a single mine or lithium deposit. Instead, it could combine multiple sources, including:
- European lithium projects;
- geothermal brines;
- recycled battery materials.
This flexibility could become increasingly valuable as Europe develops a more diversified supply chain.
Recycling could unlock additional lithium resources
Battery recycling is becoming an increasingly important part of Europe’s raw materials strategy. Many recycling facilities currently produce black mass or intermediate materials containing valuable metals. These materials still require additional refining before lithium, nickel, cobalt and manganese can return to battery production.
As a result, Europe risks developing recycling capacity while remaining dependent on foreign processors for final purification. LiSA’s approach could help close this gap by creating a refining route capable of recovering lithium from recycled sources.
Energy supply will be critical for future competitiveness
Although LiSA aims to reduce energy use, lithium refining remains an energy-intensive process.
The final carbon footprint will depend on:
- electricity sources;
- renewable energy availability;
- plant operating schedules;
- indirect emissions.
Locating production within existing Dutch chemical clusters could provide access to infrastructure, but European electricity costs remain a major factor.
Future commercial plants may require:
- long-term renewable power agreements;
- flexible electricity consumption;
- integration with existing industrial systems.
Nobian’s chlor-alkali facilities could provide opportunities for greater operational flexibility because electrochemical plants can adjust electricity consumption during periods of changing power prices.
Pilot could become a foundation for European lithium independence
LiSA remains an early-stage project focused on technology validation, not immediate commercial production. A full-scale lithium refinery would require significantly larger investment, environmental approvals, grid capacity, reliable feedstock sources and long-term customers. The project addresses one of Europe’s biggest industrial challenges: connecting existing chemical expertise, recycling capacity, renewable resources and advanced processing technologies. If successful, LiSA could provide a blueprint for a new generation of lower-carbon European lithium refining facilities and help strengthen the continent’s position in the global battery materials market.
