In a major breakthrough for Europe’s energy and automotive sectors, UK-based Neptune Energy has discovered a 43-million-ton lithium deposit beneath Saxony, Germany. The site, located in an area previously used for gas excavation, is being hailed as one of the largest lithium finds in the world, with an estimated market value of over $1 trillion.
This landmark discovery comes at a critical time for Europe’s electric vehicle (EV) industry, which has long relied on imported lithium — primarily from China, Australia, and South America. With this new find, Germany could soon produce enough lithium to power up to 800,000 electric vehicles, strengthening its independence in the global EV battery supply chain.
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A Game-Changer for Germany’s Energy Future
Lithium, often called “white gold,” is a key component in the batteries that power electric vehicles, smartphones, and renewable energy storage systems. Until now, Europe has been heavily dependent on Chinese battery suppliers like CATL, which currently provide lithium-ion batteries for major automakers such as Mercedes-Benz, BMW Group, and Volkswagen Group.
With this discovery, Germany now stands on the brink of a new industrial revolution — one that could help the country secure its own lithium supply, boost its economy, and support the European Union’s goal of achieving climate neutrality by 2050.
Neptune Energy’s CEO, Andreas Scheck, expressed optimism about the project’s impact on the continent’s future energy independence.
> “This deposit will contribute significantly to the German and European supply market for the critical raw material lithium,” Scheck said. “It represents a milestone in reshaping Europe’s EV battery future.”
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How the Discovery Was Made
The lithium deposit was found during exploration in a former natural gas extraction site in Saxony, a region already rich in mining history. Advanced geological mapping and drilling techniques revealed a vast underground reserve of lithium-bearing brine — a promising and more environmentally friendly source compared to hard rock mining.
This approach could allow Neptune Energy to extract lithium using geothermal or direct lithium extraction (DLE) technologies, minimizing land disruption and reducing water usage — two major concerns associated with traditional lithium mining.
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Boosting Europe’s Strategic Independence
The discovery could not have come at a better time. As global demand for electric vehicles continues to soar, so does the need for raw materials like lithium, nickel, and cobalt. Europe, in particular, has been seeking ways to reduce its reliance on Chinese supply chains, which currently dominate the EV battery market.
Germany, being home to some of the world’s largest automakers, stands to gain immensely from this domestic source. Analysts suggest that the Saxony deposit could supply German EV manufacturers for decades, stabilizing production costs and reducing dependence on volatile international markets.
Furthermore, this find may encourage new investments in European battery manufacturing, stimulating job creation and technological innovation.
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Environmental and Economic Impact
Lithium extraction has often raised concerns about its environmental footprint, particularly in regions like South America’s “Lithium Triangle.” However, experts believe the German deposit could set new sustainability standards.
If Neptune Energy employs cleaner extraction technologies, Germany could become a global leader in responsible lithium production, aligning with the EU’s strict environmental policies.
Economically, the deposit could inject billions into Germany’s mining and energy sectors. It’s expected to create thousands of local jobs and attract partnerships with European automakers eager to secure homegrown lithium for their next-generation EV batteries.
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A New Era for Europe’s EV Ambitions
With the electric vehicle market projected to expand rapidly over the next decade, secure access to lithium will be essential. The Saxony discovery positions Germany not just as an automotive powerhouse but also as a strategic hub for raw material production in Europe’s green transition.
As Neptune Energy prepares to move forward with detailed exploration and feasibility studies, the global EV market will be watching closely. The success of this project could redefine Europe’s energy landscape, helping it compete with global lithium producers and supporting its goal of building a sustainable, carbon-neutral future.
Source:
Reuters, DW News, Bloomberg Green, and Neptune Energy Press Release