UK-headquartered Zinnwald Lithium on Tuesday announced that it would buy the remaining 50% of Deutsche Lithium from the estate of SolarWorld Aktiengesellschaft for €8.8 million.

Deutsche Lithium is developing the advanced Zinnwald project, in Germany.

“When we created Zinnwald Lithium via the reverse takeover of a 50% interest in Deutsche Lithium in October 2020, one of our stated strategic objectives was to consolidate ownership of the late-stage Zinnwald lithium project. The acquisition announced today fulfils this objective, giving us full ownership and operational control of the project, which significantly enhances our ability to optimise and progress it at our own pace,” said Zinnwald CEO Anton du Plessis.

He stated that the Zinnwald project offered an attractive entry point into the rapidly developing battery metals sector as one of the more advanced European lithium projects.

With a definitive feasibility study completed, a mine life of 30 years, which equates to less than 50% of the current identified mineral resources, approved mining licence, strong economics showing a potential net present value of €428-million, internal rate of return of 27%, and 46% earnings before interest, taxes, depreciation and amortisation margin, the company aims to fast-track the project to production.

The Zinnwald project is located 35 km from Dresden in the heart of the European chemical and automotive industries on the border with the Czech Republic. The operation will produce battery grade lithium carbonate, lithium hydroxide and lithium fluoride (Li₂CO₃, LiOH, LiF) or a combination thereof. Furthermore, it is anticipated that in addition to returns generated by the sale of Li₂CO₃, LiOH or LiF, the project also has the potential to produce up to 32 000 t/y of potassium sulphate for sale to the European fertiliser industry. 

On completion of the acquisition, Bacanora Lithium’s shareholding in Zinnwald would decrease from 44.2% to 35.5%.