Mining giant announces investment in Slovakian R&D centre in support of plans to develop European 'battery ecosystem'
Global mining giant Rio Tinto has today announced an investment in Inobat Auto, a European-based battery technology and manufacturing company, as it looks to accelerate the development of the "battery ecosystem" across the continent.
The investment, financial details for which were not disclosed, will support the completion of InoBat's research and development centre and pilot battery line in Voderady, Slovakia.
The deal follows a Memorandum of Understanding signed in May between the two companies setting out their intention to work together to progress the establishment of a "cradle-to-cradle" electric vehicle battery value chain in Serbia.
The move is a boost to InoBat's plans to build a number of European gigafactories, including one in Serbia, to help meet soaring demand for electric vehicle (EV) batteries.
For Rio Tinto the hope is that the new plants will drive demand for its $2.4bn Jadar lithium-borates project in Serbia, which is one of the largest greenfield lithium projects currently in development.
The Jadar project remains subject to securing relevant approvals, permits, and licences, but Rio Tinto said it has the potential to produce approximately 58 thousand tonnes of battery grade lithium carbonate and position the company as the largest source of lithium supply in Europe for at least the next 15 years.
Marnie Finlayson, managing director of Rio Tinto's battery materials business, said: "We are delighted to be able to deepen our partnership with InoBat through our investment and look forward to benefitting from a broader perspective of the battery materials sector, as well as insights into future battery chemistries and technologies.
"Our Jadar lithium project in Serbia is on the doorstep of the European electric vehicle market. Capable of producing enough lithium to make around one million electric vehicle batteries2 a year to the highest environmental standards, we believe Jadar will be a critical supplier of the European battery ecosystem and, through our investment in InoBat, we hope that we can assist in making some of those batteries locally."
Marian Bocek, chief executive at InoBat Auto, similarly welcomed the investment and predicted it would provide a further boost to the burgeoning European battery market.
"InoBat is thrilled to further partner with Rio Tinto," he said. "Our mission has always been to provide solutions across the entire value chain - a cradle-to-cradle approach, which showcases the concept of the circular economy and will support Europe's bid for technological independence. Side-by-side with Rio Tinto, we are looking forward to further developing our manufacturing capacities and working closely on the downstream development of a battery ecosystem with common decarbonisation efforts at its core."
