Refining Lithium: Europe's Pioneer

Helm AG is developing a comprehensive market entry strategy to refine lithium for battery production in Europe

Helm AG battery production site

Overview

The Project at a Glance

Challenge

Lithium is a critical raw material for the production of batteries. Strong competition from Asia and the associated price pressure pose considerable challenges for European companies in terms of procurement and recycling.

Implementation

In order to be more independent, the chemical company Helm AG wants to build its own lithium refinery in Europe. To create a market entry strategy, the company is conducting a comprehensive market and profitability analysis together with Porsche Consulting

Result

The experts have outlined the market opportunities and assessed the economic viability. A detailed plan for market entry and the construction of its own lithium refinery is ready for implementation.

Challenge

Asia dominates the market

Lithium is an elementary raw material for lithium-ion batteries, which are indispensable in electromobility. Demand for the light metal is rising rapidly. Europe also has lithium deposits, but lacks the necessary capacities for refining and recycling. The processing of lithium mined worldwide is currently dominated by Asian companies – in particular due to their many years of experience and comparatively low construction and operating costs. Helm AG, one of the world's largest chemical companies with more than 100 branches in over 30 countries, is also facing these challenges as a supplier for battery production.

250

million euros is the investment required for a lithium refinery to supply half a million electric vehicles annually.

Implementation

From analysis to strategy

The solution: In the future, lithium from Europe is to be refined and recycled in Helm AG's own processing plant. Together with Porsche Consulting, the company is examining the market situation and cost structure, including investment requirements and running costs. Dr. Peter Schuhmacher, Senior Advisor at Porsche Consulting and former President of Battery Materials & Recycling at BASF, contributed his expertise to the analysis.

"Porsche Consulting's expertise along the battery value chain and the data-based analyses have provided a sound basis for strategic decisions – with regard to positioning, target group and product range."
Stephan Schnabel
Chief Executive Officer
Helm AG
Stephan Schnabel CEO Helm AG

Result

A top-class refinery is to be built

Together with Porsche Consulting, Helm AG was able to develop a plan for the construction of a refinery to the latest standards – both for lithium refining and for recycling. The most important regions were prioritized for market entry and the top customers in Europe were identified. The comprehensive analyses also made it possible to determine the profitability of 15 different battery-grade lithium production processes. The type of recycled lithium raw material was evaluated in terms of sustainability, available volume and competition.

Contact

Consulting that works

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