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Europe Considers Mining Lithium On The Moon To Meet Demand Surge

Author: European Capital Insights | September 12, 2025 12:12pm

Europe's ambition to decarbonize its economy and build out a world-class electric vehicle (EV) industry faces a fundamental constraint in lithium. The white metal is the backbone of EV batteries, grid-scale energy storage, and the continent's climate goals.

Yet Europe currently produces almost none of its own supply, relying on imports for nearly all of its needs, mainly from China, Chile, and Australia.

The European Commission has estimated that demand will surge twelvefold by 2030, and as much as twenty-one times higher by 2050. This trend leaves the European Union (EU) vulnerable to supply shocks, price volatility, and geopolitical pressure.

Brussels' response has been the Critical Raw Materials Act. The law requires at least 10% of Europe's lithium demand to be sourced domestically by 2030. It caps reliance on any single country at 65%.

Given Europe's potential—reserves across Portugal, Spain, Serbia, and the Czech Republic, the supplies could theoretically cover much more. But moving from geology to production has proven difficult.

Vulcan Energy (OTCPK: VULNF), an Australian-German venture, is pursuing a solution in Germany. On Wednesday, the firm received a permit to build a lithium hydroxide plant in Frankfurt utilizing innovative extraction methods.

Europe's Lithium resources, Source: ResearchGate

"It's going to be very hard for the EU to develop primary sources of lithium domestically," said Kwasi Ampofo, head of metals and mining at BloombergNEF. "Not impossible, but very hard."

The US, under the Trump administration, has started initiatives to reduce its dependency on China for rare earths and critical materials. President Donald Trump signed an Executive Order in March to prioritize domestic mining and processing.

The order streamlined federal permitting for mineral projects, reducing timelines from years to months, with a focus on rare earths, lithium, cobalt, and other minerals for national security. It aims to make the US the leading producer and processor of non-fuel minerals while creating jobs and reducing foreign reliance.

Portugal's Potential and Pushback

In Europe, Portugal has the largest known reserves, concentrated in the northern regions of Vila Real and Montalegre.

British-listed Savannah Resources (OTCPK: SAVNF) is advancing plans at Mina do Barroso, which it hopes will become the first major European lithium mine. Company estimates suggest output sufficient to supply batteries for 500,000 EVs annually.

Yet locals in Covas do Barroso have fiercely resisted, refusing to sell land needed for the project. The farming community, recognized by the UN as a heritage agricultural landscape, sees lithium as an existential threat.

"You're talking about destroying an area classified as globally important, with a water system over 500 years old," said Catarina Alves Scarrott, from the protest group Unidos em Defesa de Covas do Barroso. "You're going to sacrifice all of this for open-pit mines. For what?"

The dispute has escalated into legal battles, with activists accusing Savannah of trespassing on communal lands. Portuguese authorities have issued limited permits for exploratory work, prompting lawsuits and injunctions from residents.

Even so, Lisbon remains committed to pushing projects forward, betting on long-term strategic value. With prices hovering around $10,000 per ton today, the economics look fragile. But policymakers argue that once markets tighten, Europe will regret missing the chance to establish domestic supply chains.

Lithium carbonate prices (CNY), 2020-Present, Source: TradingEconomics

Riches in the Serbian Ground, Risks Above It

If Portugal represents a battle over heritage and local livelihoods, Serbia embodies raw political risk. The Jadar Valley, in western Serbia, contains one of the world's most unique lithium deposits.

The mineral jadarite, discovered only in 2004, is rich in lithium and boron. Mining giant Rio Tinto (NYSE:RIO) has spent more than $2 billion on the project, seeing it as a cornerstone for Europe's EV transition.

But protests have repeatedly derailed the project. In 2021–22, tens of thousands of Serbians marched against the mine, citing fears of water pollution, deforestation, and foreign exploitation. The government revoked Rio's licenses, only to reinstate them in mid-2024 after new environmental assessments.

President Aleksandar Vučić has hinted construction could start as soon as 2026. Yet with widespread distrust of his administration and periodic unrest in Belgrade, the political risk remains high.

Any renewed push could reignite demonstrations, delaying the mine for years.

Hard Rock vs. Direct Extraction

Most of Europe's potential reserves are in hard rock deposits, requiring open-pit mines. These are environmentally disruptive, noisy, and water intensive. Local communities in Spain, France, and the Czech Republic have voiced concerns similar to those in Portugal and Serbia.

A cleaner alternative is direct lithium extraction (DLE), where brine is pumped from underground aquifers, lithium is filtered out, and the remaining water is reinjected. DLE consumes less land and water than open pits, and the above-ground facilities are far smaller.

Vulcan Energy plans to pair geothermal energy generation with lithium extraction, aiming to deliver "zero-carbon lithium" to European automakers.

Direct lithium extraction process, Source: ResearchGate

Once operational, Vulcan's DLE plant in Frankfurt could produce up to 24,000 tons annually, enough for about 500,000 EVs per year.

Oil majors are also eyeing the technology. Exxon Mobil (NYSE:XOM) has acquired brine acreage in the U.S., while Chevron (NYSE:CVX) has also invested in developing DLE methods. Their interest signals confidence in scaling up extraction.

Yet, DLE remains unproven at commercial scale. Compared to the millions of tons produced annually from Chilean evaporation ponds or Australian spodumene mines, DLE output is still negligible. The question is not whether it works in pilot plants, but whether it can be deployed profitably at the industrial scale Europe needs.

Brussels Aims for the Moon

Facing foreign reliance and domestic opposition, Brussels has pursued a solution straight out of Hollywood – space mining. The European Commission's Strategic Foresight Report, released on Tuesday, explicitly mentions the Moon as a potential source of critical minerals.

"In response, there may be a growing emphasis on advanced mining technologies, including space mining, starting with the Moon," the report warned.

Luxembourg has already positioned itself as Europe's space mining hub, offering legal and financial frameworks for companies aiming to extract resources from celestial bodies. NASA and Japan's JAXA have also advanced pilot programs.

The economics are far from proven—industrial-scale space mining remains science fiction today. But the EU estimates that potential "space resources" could be worth up to €170 billion by 2045. Metals such as lithium, copper, and rare earths, if harvested in orbit, could dramatically reshape supply dynamics.

The very fact that Brussels is discussing lunar mining shows growing anxiety among its bureaucrats. With China refining 60% of the world's lithium and nearly 100% of its graphite, Europe fears being locked into dependence just as demand soars.

For now, Europe's lithium future hinges on projects like Portugal's Barroso mines, Serbia's Jadar Valley, and Germany's geothermal brines. But in a sign of how high the stakes are, policymakers are already thinking beyond Earth.

Disclaimer:

 Any opinions expressed in this article are not to be considered investment advice and are solely those of the authors. European Capital Insights is not responsible for any financial decisions made based on the contents of this article. Readers may use this article for information and educational purposes only. 

Benzinga Disclaimer: This article is from an unpaid external contributor. It does not represent Benzinga’s reporting and has not been edited for content or accuracy.

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