The French government will invest €50 million in a proposed lithium mining project in central France, underscoring growing efforts to secure domestic supplies of critical battery materials for the energy transition.
The funding, provided through the state investment arm Banque des Territoires, will support development of the Emili lithium project led by mining group Imerys. The investment involves acquiring a minority stake, with completion expected in the coming months.
The project centres on a deposit at the Beauvoir site in the Allier department of the Auvergne-Rhône-Alpes region. If approved following a feasibility study due next year, the mine could produce up to 34,000 tonnes of lithium annually, making it one of the largest hard-rock lithium operations in Europe.
French officials have described domestic lithium supply as strategically vital. Economy Minister Roland Lescure said critical minerals represent “a key geostrategic issue of this century” for energy security and industrial sovereignty. Imerys Chief Executive Alessandro Dazza said the state’s participation confirms the project’s industrial importance and strengthens the company’s plans to become a major European lithium supplier.
The Beauvoir deposit has been known for decades. Geological surveys in the 1960s identified lithium-bearing minerals beneath a kaolin mine that has operated since the late 19th century. Recent studies suggest the site could contain about one million tonnes of lithium oxide, substantially higher than earlier estimates.
If developed, the project could supply enough material each year for batteries in roughly 700,000 electric vehicles. Lithium-bearing ore would be mined underground and processed at a nearby facility—less than 100 kilometres away—to produce lithium hydroxide, a key cathode material for lithium-ion batteries.
The initiative could generate around 1,000 direct and indirect jobs across the mine and refining operations. Total development costs are estimated at about €1 billion, with production costs projected at €7–9 per kilogramme, which the company considers competitive within the European market.
Imerys said it plans to follow responsible mining standards set by the Initiative for Responsible Mining Assurance, using underground extraction to reduce environmental impact. The company also intends to power operations with electricity—benefiting from France’s largely low-carbon energy mix—and to minimise emissions through electrified equipment and rail transport.
The project comes as Europe seeks to reduce dependence on imported battery materials, particularly from Asia. Several lithium initiatives are under development across the continent, though progress has been uneven following delays or cancellations of major projects elsewhere.