Portuguese energy company Galp has officially canceled its €1 billion Aurora lithium refinery project in Setúbal, citing a lack of funding and the inability to secure a new international partner. The refinery was poised to process 35,000 tonnes of battery-grade lithium hydroxide annually after 2026.
The decision follows the withdrawal of Galp's original partner, Swedish battery manufacturer Northvolt, from their 50-50 joint venture earlier this year due to financial challenges. Northvolt recently filed for Chapter 11 bankruptcy protection in the U.S., struggling with funding shortfalls despite discussions with Volkswagen and Goldman Sachs.
Galp’s CEO, Filipe Silva, had previously expressed caution, indicating the company would only proceed with "adequate return" guarantees. While Galp’s refinery plans have faltered, its strategic investment in the Mina do Barroso lithium project with Savannah Resources remains active, keeping its presence in Portugal's lithium exploration sector alive.
