Regional Decree-Law 5/2022 Regulatory Measures the use of lithium mineral resources in Extremadura.
About this good practice
This Decree indicates that exploiting existing or potential lithium mineral resources throughout Extremadura's territory is of public interest.
The Decree aims to ensure lithium is processed in Extremadura and benefits the region. Lithium processing covers elements of exploitation, storage, preparation, concentration, or any beneficiation from mineral deposits, including rehabilitating areas affected by mining activity. Lithium mineral resources' metallurgical processing and beneficiation comprise the activities necessary to produce lithium hydroxide or a similar useful lithium compound for manufacturing lithium-ion batteries.
Companies that commit to processing lithium in Extremadura stand to gain significant benefits. These include access to public funding, expedited administrative formalities, and the potential to be declared of regional interest. The Decree has also reinforced lithium as a product of regional interest and integrated lithium operations as regional interest business projects (‘PREMIA’), thereby prioritising permitting, recognition as public utility projects, and access to employment grants.
It's important to note that granting any concession for the exploitation of lithium resources in Extremadura is strictly conditional upon compliance with the obligation that the metallurgical and mineral processing and benefit of the mineral's resources must necessarily be carried out in the region.
Resources needed
The civil servants belonging to the Extremadura Government manage this Decree-Law and, in particular, the Qualification as PREMIA project, managed by the Regional Ministry of Economy, Employment and Digital Transformation, with direct funding if the applicants meet the established requirements.
Evidence of success
ENE and Lithium Iberia are in different stages of administrative procedures with the Extremadura Government to exploit the Valdeflorez Mine and the Las Navas Mine. Finally, the integrated mining and first industrial transformation of the Valdeflórez lithium resource has already been declared a PREMIA project.
The companies have announced on their web that ENE will generate 700 direct and about 1000 indirect jobs, and Lithium Iberia will create about 790 direct and 1500 indirect jobs.
Potential for learning or transfer
It has learning and transfer potential because clear and transparent regulation is crucial in the EU.
This Regional Decree-Law has three axes: The first is to meet the highest environmental sustainability standards in extracting while ensuring their economic value. The second involves the availability of information and citizen participation, municipal intervention, and greater transparency in administrative procedures. Finally, the third consists of the equitable distribution of the economic benefits of exploitation.
The transfer of this regulation to other EU regions could help generate public confidence, economic and social benefits, and environmental security for other regions with mineral deposits.
This Regional Decree regulates the exploitation and transformation to develop resilient value chains for industrial ecosystems by reducing dependence on these critical raw materials through circular use, product sustainability, and innovation.