14th May 2019 14:06
LONDON (Alliance News) - Savannah Resources PLC on Tuesday welcomed a move by France and Germany to work on electric vehicle batteries.
The two nations, Savannah said, have set up a cross-border battery cell consortium to develop next-generation electric vehicle batteries, with the initial investment totalling between EUR5 billion and EUR6 billion.
Of that, EUR4 billion is expected to come from the private sector, with EUR1.7 billion of the funds to help European companies, mainly in energy and automotives.
Savannah Chief Executive David Archer said: "The Franco-German decision to establish this initiative, as well as the EU's plans to launch a European raw materials investment facility, highlights the seriousness of the EU to strongly commit to increasing its investment in the European lithium battery industry.
"This, in turn, highlights the issue of securing a sufficient supply of lithium to meet anticipated demand, which brings the significance of Mina do Barroso further into focus. Its relevance and location mean it has the potential to be an extremely important strategic asset, playing a leading role in ensuring Europe meets a significant portion of its demand for lithium internally."
"The case for addressing climate change is now firmly in the public discourse, as is the role that lithium and EVs will play in this," Archer continued.
"The recent report from UK government advisers calling for a ban on the sale of all diesel and petrol vehicles by 2030, instead of the initially targeted 2040, shows policy momentum is building and it is now indisputably clear electric vehicles are set to reshape the global car industry."
Savannah shares were 1.5% higher on Tuesday afternoon at 5.43 pence each.
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