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Infinity Lithium (ASX:INF) set to receive share of 4.3b euro recovery plan

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ASX:INF      MCAP $23.13M
14 July 2021 15:05 (AEST)
Infinity Lithium Corporation (ASX:INF) - CEO and MD, Ryan Parkin

Source: LinkedIn

Infinity Lithium Corporation (INF) is set to receive a share of a billion dollar recovery plan approved by the Spanish Government’s Council of Ministers.

The 4.3 billion euro (roughly A$6.8 billion) funding package was approved with the aim of turning Spain into a European electromobility hub. The funds will kick start the production of electric vehicles and lithium-ion batteries.

The government will stimulate private investment for Strategic Projects for Economic Recovery and Transformation (PERTE), which will include the entire production chain from extracting lithium to assembling battery cells and manufacturing electric vehicles.

The European Next Generation mechanism will enable the mobilisation of another €19 billion (around A$30 billion) in private investment, bringing the total amount to approximately €24 billion (approximately A$37.0 billion) between 2021 and 2023.

PERTE is part of a €13 billion (A$20.5 billion) commitment to the sustainable transformation to eMobility.

Once the PERTE is published in the official state gazette, “Boletín Oficial del Estado,” the different interested companies will be able to register to participate in it and start the process to request resources from the European Union.

As part of Spain’s transition to electric mobility, the automotive industry sector share of national gross domestic product (GDP) is forecast to increase by 50 per cent to 15 per cent of total GDP by 2030.

“The automotive industry is going to receive public support throughout the manufacturing process,” Prime Minister Pedro Sánchez said.

Infinity Lithium Corporation was up 30.4 per cent, trading at 15 cents at 12:28 pm AEST.

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