Europe supports construction of battery gigfactories
The subsidies are available to companies that build battery manufacturing plants for the growing electric vehicle industry. Brussels fears that the automotive industry - an important branch of the economy - could lose out in the battle against Asian imports. The big German car manufacturers such as VW or Mercedes are working on various electric cars and plug-in hybrid cars, Tesla and Japanese manufacturers are also pushing to Europe.
You don't want to miss the boat. After all, around 80 percent of the existing and planned battery sites are located in China, while in Europe the figure is less than four percent. Therefore, there are already around 260 companies in the EU Battery Alliance, with four groups of them planning battery factories that can compete with Tesla's "Gigafactory" in Nevada. Germany has teamed up with Poland to set up battery production facilities in western Poland and Lusatia.
And car manufacturers are increasingly in need of lithium-ion batteries. These still have to be purchased primarily in Asia. The highest quality lithium deposits are found in the so-called "lithium triangle" between Bolivia, Argentina and Chile. In Argentina, in Salta, for example, Millennial Lithium is working on its Pastos Grandes Lithium project and on the Cucharí East project. Both are already advanced and are located in the best lithium region.
Copper is also increasingly needed to build vehicles with the new drive technologies. In 2017, 57 percent of copper was used worldwide in the cable and electrical sectors. Around 15 percent went to the construction industry and around nine percent to the automotive sector. Copper is one of the commodities, alongside gold, on which Auryn Resources concentrates. The Sombrero gold-copper project in southern Peru has recently returned to excellent drilling results. The project has impressive surface mineralization.
Current corporate information and press releases from Millennial Lithium (https://www.resource-capital.ch/en/companies/millennial-lithium-corp.html) and Auryn Resources (https://www.resource-capital.ch/en/companies/auryn-resources-inc.html).
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