Infinity Lithium said that Tecnología Extremeña del Litio (TEL) has secured funding of €18.8m from the Spanish government for advancing the San José lithium project in the Extremadura region of Spain.

Tecnología Extremeña del Litio is a joint venture between Infinity Lithium (75%), which is an Australian listed minerals company, and Valorzia Mineria (25%), a Spanish exploration firm.

The grant to Tecnología Extremeña del Litio has been awarded by the Spanish Ministry of Industry, Trade and Tourism.

The ministry has concluded the distribution of funds through PERTE VEC II, providing definitive assistance for industrial projects related to electric vehicle production, essential components, and the production or recovery of necessary raw materials.

The grant commitment for the San José lithium project aligns with the PERTE VEC II regulations focused on critical raw materials submissions.

The final evaluation of projects within PERTE VEC II approved a definitive commitment of €190.4m, supplementing previously announced grant funding. This totals €528.7m across 26 projects, contributing to the development of a national electric vehicle battery chain.

San José received the sixth largest funding under PERTE VEC II, marking the initial allocation of PERTE funds specifically designated for the processing of critical raw materials.

Infinity Lithium managing director and CEO Ryan Parkin said: “We are very pleased with the significant funding support awarded for San José. This is a significant milestone for both the Company and the Project.

“The Company welcomes the government’s commitment to recognising the critical importance of lithium and its endorsement of the Project. These first funding commitments for the processing of critical raw materials in Spain places the Company at the forefront of future funding pathways at both the national and European level.”

Last week, Infinity Lithium completed the updated scoping study for the San José lithium project. Expected to have a 26-year production life, the asset is estimated to yield nearly 33,000 metric tons per annum of lithium hydroxide monohydrate.

After accounting for contingencies, the pre-production capital expenditure of the project is €1.43bn.