Can Berkeley Energia Turn $1bn Arbitration Into a Win for Its Lithium-Rubidium Project?

Conchas Project, Unlocking Critical Minerals

Berkeley Energia Limited has made significant strides in its Conchas project, located in western Spain near the Portuguese border. The company’s recent metallurgical test work, conducted by SLR Consulting, has demonstrated encouraging recoveries of lithium (78%) and rubidium (63%) using flotation and magnetic separation techniques. These results highlight the potential of the muscovitic leucogranite-hosted mineralisation, which also contains accessory elements such as tin, caesium, beryllium, niobium, and tantalum.

The Conchas deposit’s shallow, thick mineralised zones, with lithium grades reaching up to 0.95% Li2O in drill intercepts, position it as a promising source of critical raw materials essential for advanced technologies and renewable energy sectors. The company is progressing with 3D geological modelling and plans further metallurgical optimisation to refine resource estimates and processing methods.

International Arbitration, A High-Stakes Legal Battle

Parallel to its exploration activities, Berkeley’s wholly owned subsidiary, Berkeley Exploration Limited, has initiated international arbitration proceedings against the Kingdom of Spain at the International Centre for Settlement of Investment Disputes. The dispute centers on Spain’s regulatory actions that Berkeley alleges violate provisions of the Energy Charter Treaty, particularly concerning the Salamanca uranium project’s permitting process.

Berkeley is seeking preliminary compensation of approximately US$1 billion, reflecting the significant financial and operational impact of the permitting delays and regulatory decisions. Despite the dispute, the company remains committed to the Salamanca project and expresses openness to constructive dialogue with Spanish authorities to resolve the issues amicably.

Salamanca Project and Spanish Nuclear Context

The Salamanca uranium project, situated in a historic mining region, holds a substantial mineral resource of 89.3 million pounds of uranium, with a majority classified as measured and indicated. The project has secured over 120 approvals at European and national levels, underscoring its potential as a low-cost uranium producer contributing to Europe’s zero-carbon energy goals.

Meanwhile, Spain’s nuclear power landscape is evolving, with the Almaraz nuclear power plant owners seeking to extend operations beyond 2027 to 2030. This comes amid heightened debate following a major blackout in 2025 that exposed vulnerabilities in the Iberian electricity grid. Nuclear power remains a critical component of Spain’s energy mix, generating around 20% of net electricity in 2024, which could influence uranium demand dynamics relevant to Berkeley’s project.

Financial Position and Outlook

Berkeley Energia reported a strong financial position at the end of December 2025, with A$68 million in cash reserves and no debt. Operating cash outflows reflect ongoing exploration and arbitration-related expenditures, consistent with the company’s strategic focus on advancing its critical minerals and uranium assets.

Looking ahead, Berkeley’s next steps include advancing resource modelling at Conchas, optimising metallurgical processes, and navigating the arbitration timeline. The company’s ability to resolve permitting challenges in Spain and capitalise on critical mineral demand will be key to unlocking shareholder value.