The Infinity Lithium Corporation Ltd (ASX: INF) share price is continuing its recent rebound in a big way today. This is on the back of the Spanish government approving a €4.3 billion (AUD$6.79 billion) funding package towards the development of the country’s electric vehicle value chain.
At the time of writing, the lithium explorer’s shares are up 17.39% to 14 cents. Although, the company’s shares were as high as 15.5 cents and up more than 25% earlier in the day.
Infinity Lithium share price up on EV funding
Investors are gobbling up shares in Infinity Lithium today following the company’s latest announcement.
According to the release, the Spanish government has committed ~A$6.8 billion in funding by 2023. These funds are aligned to the use of the European Union’s Next Generation recovery and resilience funds.
Furthermore, the funds will be put towards investments across the whole electric vehicle (EV) value chain. Importantly for Infinity, this includes the extraction of lithium. However, it extends all the way through assembly of the battery cells, manufacturing of EVs, and development of charging infrastructure.
This holds relevance to Infinity Lithium as its 75% owned San José Lithium Project is located in Spain. This project is the second-largest JORC hard rock lithium deposit in the EU.
Another positive for lithium players were the comments from Spain’s Prime Minister Pedro Sánchez. According to Sánchez, the country’s automotive industry will increase by 50% to 15% share of the total GDP by 2030.
The funding approved by the Spanish government’s Council of Ministers is aimed towards turning Spain into an EV hub. However, today’s approved funds are only the tip of the iceberg. When combined with the EU’s Next Generation investments, a total of €24 billion is expected between 2021 and 2023.
Commenting on the electric push, Spain’s Prime Minister, Mr Sánchez said:
It will be one of the biggest projects, not in Spain, but in Europe, in recent decades. The government firmly believes in the capacity, the industrial potential of our country, to face this challenge, which will affect the entire production chain, from the extraction of raw materials such as lithium… in short, the automotive industry is going to receive public support throughout the manufacturing process
In other news, the Infinity Lithium share price experienced a surge late last month. At that point in time, the company announced a memorandum of understanding with LG Energy Solution.