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Zinnwald lithium project in Germany now 2nd largest in EU The Rise of Zinnwald: A New Giant Emerges in the German Lithium Industry

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Europe has witnessed the ascent of a new powerhouse in the lithium industry. The Zinnwald lithium project in Germany has claimed the title of being the second-largest hard rock lithium deposit in the European Union. With its stock surging by over 41% and closing at 7.55p on Wednesday, Zinnwald Lithium is now adorned with a market capitalization of Β£35.84 million ($45.2m).

The monumental achievement comes on the heels of the project’s latest resources estimate, which is a result of 26,911 meters of new diamond core drilling across 84 drill holes. This extensive drilling, along with a reinterpreted and updated geological model, marks a substantial leap from the previous estimate released in September 2018.

The project, strategically located just 35km from Dresden, lies at the heart of Europe’s chemical and automotive industries. It is poised to play a pivotal role in the production of battery-grade lithium carbonate, lithium hydroxide, and lithium fluoride (Li2CO3, LiOH, LiF), or a combination of these critical compounds.

However, as the project basks in its glory, the wider lithium market has been grappling with a significant slump. Prices for lithium, once revered as β€œwhite oil”, have plunged by more than 80% from their 2022 peak. This downward spiral has been fueled by the deceleration in electric vehicle sales, particularly in China, the world’s largest electric vehicle consumer, compounded by a surplus in the market.

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