Lithium is a key element in the manufacture of new energy vehicle power batteries and energy storage batteries, and can also be used in other modern industries, such as the aviation industry and glass manufacturing. Hungary, which is ambitiously building a battery power, has another good news. According to Hungarian media reports on November 13, the Hungarian Oil and Gas Industry Joint Stock Company (MOLGroup), one of the largest integrated oil and gas companies in Eastern Europe, discovered a large amount of lithium in the waters of the Pusztaföldvár area in Hungary, and the related extraction test project will be launched next year.
According to reports, as early as 2019, preparations for MOL had begun, and relevant company personnel analyzed local water samples. During testing, they discovered some promising oil wells. Laboratory expert József Koszta said: “When lithium concentrations exceed 50 mg/l, it is worth considering extraction.”
In August this year, Mol Magyarország general manager György Bacsa announced that trials of lithium extraction will begin next year in the Pusztaföldvár area, as preliminary findings indicate that some wells have high lithium concentrations and it may be worthwhile to try the application of technology to separate lithium from groundwater.
Mol is trying different lithium extraction technologies in different oil wells, and the one it most hopes to implement is the direct lithium extraction method ("DLE"). Unlike the traditional drying method for lithium extraction from salt lakes or the open-pit mining of lithium mines, the direct lithium extraction method to separate lithium from water is currently the most advanced technology and will not bring huge environmental burdens.
Specifically, Mol hopes to use the groundwater brought to the surface during oil extraction in a gentle, recyclable way. After the lithium is separated, the water is pumped back into the original soil layer. Another advantage of the technology is that the associated infrastructure can be easily expanded much faster than existing lithium extraction technology facilities.
However, this technology still has uncertain factors in terms of technological maturity and cost. In addition, it is uncertain how much investment the project will require.
Archibald Schubert, MolHungary's head of R&D and production, said that as with all similar "R&D" projects, the initial costs are high.
According to Archibald Schubert, Mol plans to complete testing by the end of next year, find the best technology and start trial production, which will cost up to 1 billion forints. Depending on the scale of the project, formal production and subsequent expansion may cost up to 10 billion forints.
But Dávid Kapes, head of Mol's low-carbon and new energy business, still expressed optimism about its prospects. "Although the project is still in the beginning stage, we are optimistic - this is an exciting new project for the energy transition, and based on our current understanding, the project has potential."
In addition, positive factors for future formal production include that the lithium extraction facilities can be based on Mol's existing infrastructure, which are also used for oil production. In terms of labor force, because Pusztaföldvár is a traditional mining center in Hungary, it has an abundant and stable labor force.
It is worth mentioning that the Hungarian Oil and Gas Industry Joint Stock Company (Magyar OLaj-és Gázipari Részvénytársaság, Hungarian Oil and Gas Public Limited Company), which leads the lithium extraction project, has deep qualifications. This is a Hungarian multinational oil and gas company headquartered in Budapest. It was established on October 1, 1991, by merging nine former members of the National Oil and Gas Trust established in 1957.
MOL's operating activities cover every area of the oil and gas industry, including exploration and production, refining, distribution and marketing, petrochemicals, power generation, trading and retail. It currently operates in more than 30 countries, employs more than 26,000 people, and has approximately 1,900 service stations.
In the field of new energy, MOL launched a car sharing service called MOLLimo in Budapest in 2018, and its new EV charging brand is Plugee.
When it comes to when the lithium mined in Pusztaföldvár will reach the market, Mol experts said it is expected to take 3-4 years.
The new headquarters building of the MOL Group, which was put into operation this year, is the tallest building in Hungary, with a height of 469 feet and a total of 28 floors. It is an important part of the MOL Group's 2030 sustainability vision. The building features low- and zero-carbon technologies such as integrated rooftop photovoltaic panels, geothermal heat pumps, and features greywater recycling and rainwater harvesting systems.
According to industry insiders, the discovery of lithium mines in Hungary and the launch of subsequent mining projects may help local lithium battery production to localize the supply chain.
As of now, Hungary has 38 domestic power battery production projects, receiving a total investment of 14.2 billion euros. China is the second largest investor after South Korea. CATL’s battery factory in Debrecen is the largest investment project in Hungarian history, with a planned investment of 7.34 billion euros.
In October this year, CATL revealed that its Hungarian battery factory currently has a planned production capacity of 100GWh. The first phase of construction has started and is expected to be completed in about two years.
In addition to CATL, Chinese battery company Huizhou EVE Power announced in June this year that its wholly-owned subsidiary EVE Power Hungary Kft will invest in the construction of a large cylindrical battery project for passenger cars in Debrecen, Hungary, with its own and self-raised funds, with an investment amount of no more than 9.97 billion yuan. At present, the company has successfully purchased land. On November 13, The Paper reporter learned from Yiwei Lithium Energy that the infrastructure construction of the factory has started.
This year, Hungarian Foreign Trade Minister Peter Szijjarto introduced when attending a relevant meeting in China that Hungary is gradually developing into a leader in the European battery field. "Hungary's power battery production ranks fourth in the world and will rise to second place in the world in the future, second only to China." Peter Szijjarto said.