French geothermal group Arverne has announced the successful completion of a new major financing step for its subsidiary Lithium de France, alongside its partner Equinor Ventures AS.
The move supports the advance of Lithium de France’s pre-industrial phase, covering drilling activities, the DLE demonstration plant and Front-End Engineering Design (FEED), a key component of the Definitive Feasibility Study (DFS), according to an Arverne statement.
The project targets annual production of 27,000 tonnes of lithium carbonate, to equip nearly 800,000 electric vehicles, while delivering 2.2 TWh of geothermal heat to businesses, farmers and local authorities in Northern Alsace.
The new financing takes the form of a convertible note of up to €33mn, maturing on 30 June 2027, with Arverne and Equinor Ventures AS both participating at their pro rata share.
Upon completion of a qualifying financing of €50mn, the principal amount and accrued and uncapitalised interest will be converted to Lithium de France shares.Pierre Brossollet, Arverne’s founder and CEO of Arverne, said it marks a significant step in the execution of the company’s so-called ‘Dual Flow’ strategic plan and underscores the continued confidence of our long-standing partner Equinor ventures.
“Recognised by the French State as one of the 150 Major Strategic Projects, Lithium de France stands out as one of the most promising industrial developments in geothermal heat and lithium in Europe, combining competitiveness with the energy transition,” he said.
Katherine Peachey, head of Equinor Ventures, said this latest financing reflects the company’s continued support for Lithium de France.
“Equinor Ventures, a shareholder in Lithium de France since 2021, reaffirms its confidence in the company, its management team and its development plans to deliver sustainable, low-carbon lithium and geothermal heat production in Europe.”