According to the International Energy Agency, about 55 additional mines will be needed to meet global lithium demand by 2035. Against this backdrop, the gray metal is already central to Western strategies aimed at securing new sources of strategic minerals.

Andrada Mining, a junior miner listed on London’s AIM market, said on Wednesday it had signed a cooperation agreement with the European Investment Bank (EIB) to support development of its Uis lithium project in Namibia.

The agreement, which provides technical and financial assistance from the European Union’s lending arm, marks Brussels’ first concrete step into Namibia’s emerging lithium sector.

The two parties will work together to advance the Uis project through completion of a bankable feasibility study. The EIB could provide up to 2 million euros ($2.4 million) under the agreement, as part of the EU’s strategy to diversify supplies of critical raw materials such as lithium.

“Lithium is recognised as both a critical and strategic raw material under the Critical Raw Materials Act, and the EIB is increasingly backing projects that diversify supply. Our partnership with Andrada is aimed at developing projects attractive to investors that maintain high environmental and social standards, while delivering mutual benefits for African and European partners,” said Andrea Clerici, the EIB’s director for corporate and global activities.

Andrada currently produces tin at Uis and plans to expand into lithium, targeting annual output of 50,000 tonnes. The cooperation agreement does not include any commitment to future financing or supply agreements.

Visibility for Namibian lithium

The deal highlights growing European interest in Namibia’s lithium sector. In addition to Uis, the country hosts several other projects with identified potential.

These include the Karibib project operated by Australia’s Lepidico, where 11.9 million tonnes of resources grading 0.45% lithium oxide have been identified. Other projects include Omaruru, led by Prospect Resources, and Lithium Ridge, in which Chile’s SQM is investing through a partnership with Andrada.

It remains unclear whether European involvement at Uis could extend to other lithium projects in Namibia. Brussels has been engaged with the country since 2022 under a strategic partnership focused on developing critical mineral value chains.

Global lithium demand is expected to rise sharply. The International Energy Agency estimates that around 55 additional mines will be needed worldwide by 2035 to meet projected demand. Lithium is a key component in batteries for electric vehicles and energy storage systems, central to global decarbonisation efforts. Best known for diamond and uranium production, Namibia also hosts rare earth projects, another category of minerals deemed critical by the European Union.

Aurel Sèdjro Houenou