San José Mining Licence Delayed to Late 2025; Infinity Withdraws from €18.8M PERTE Grant
Infinity Lithium updates on regulatory feedback delaying its San José mining licence and pivots to larger European funding opportunities, signaling a strategic shift in project development.
- Regional government requests expanded documentation delaying public consultation to late 2025
- Mandatory repeat metallurgical testing in Spanish labs introduces technical compliance challenges
- Withdrawal from PERTE grant programme due to timing constraints
- Invitation to apply for larger European and national funding initiatives
- Company remains well funded and committed to advancing San José lithium project
Regulatory Feedback Extends Timeline
Infinity Lithium Corporation has received detailed feedback from the Regional Government of Extremadura regarding its Direct Exploitation Concession Application for the San José lithium project. The Mines Department has requested clarifications and additional documentation, including updates to financial models reflecting recent market changes and board composition. This has pushed the anticipated public consultation phase from Q4 2024 to late 2025, extending the regulatory timeline significantly.
The company has been granted up to nine months to address these requirements, underscoring the complexity and thoroughness of the permitting process in Spain. While this delay may temper near-term expectations, Infinity views the extended dialogue with authorities as a constructive step toward ensuring transparency and project deliverability.
Technical Compliance Challenges with Metallurgical Testing
A notable regulatory hurdle involves the Mines Department’s insistence on repeating all metallurgical testwork using certified Spanish laboratories, a requirement complicated by the current lack of domestic capability to conduct high-pressure leach (autoclave) testing essential for San José’s lithium chemical production. Previously, Infinity relied on Australian and German labs for these tests. The company is actively collaborating with Spanish labs to build the necessary expertise, a process that may set a precedent for other regional projects.
Strategic Shift in Funding Approach
Infinity has elected to withdraw from the PERTE VEC IIb grant programme after failing to secure an extension to utilise the €18.8 million capital equipment grant within the original timeframe. Given the extensive permitting and construction timeline required before lithium chemical production can commence, the company prudently returned these funds to avoid accruing interest charges.
In a strategic pivot, Infinity has been invited to apply for a broader suite of European and national funding initiatives, including the €1 billion Batteries call under the 2024 Innovation Fund, a €750 million aid line from Spain’s Ministry for Ecological Transition, and the European Commission’s €4.6 billion Innovation Fund for Zero Emission Technologies. These programs align more closely with the project’s development stage and offer potentially greater financial support.
Financial Position and Outlook
Despite these regulatory and funding shifts, Infinity Lithium remains well capitalised, with €15.06 million held as a security deposit and €3.76 million in restricted cash. The company reiterates its confidence in the medium- to long-term demand for lithium produced in Europe, positioning San José as a key contributor to the continent’s energy transition.
Infinity is progressing with the required documentation updates and metallurgical testing, while preparing applications for the new funding opportunities. The company also signals ongoing interest in expanding its portfolio with complementary energy minerals, reflecting a broader strategic vision beyond San José.
Bottom Line?
Infinity’s regulatory and funding recalibrations underscore the complexities of European lithium project development but position San José for stronger long-term support.
Questions in the middle?
- How will the extended timeline impact Infinity’s overall project economics and investor sentiment?
- Can Spanish laboratories develop the required metallurgical testing capabilities promptly to avoid further delays?
- What are the prospects and timelines for securing the larger European and national grants now targeted?
