A geothermal lithium firm has attracted a plan for government investment into a new method to harvesting the metal, which is essential for many technologies.
Photo: 123RF
Economic and Regional Development Minister Stuart Nash announced the new Regional Strategic Partnership Fund (RSPF) will invest an equity stake of $2 million in the company, Geo40.
Geo40 already extracts silica from a site at Ohaaki, near Taupō, and the money will be used to scale up its lithium production technology there.
Lithium is a major component of lithium-ion batteries and batteries used in electric vehicles as well as light aluminium-lithium alloys used in trains, planes and bikes.
Traditional lithium mining left a heavy carbon footprint, Nash said. But the Geo40 programme involves recovering the mineral from mineral-rich brine leftover from geothermal energy production, and returning the water to the geothermal field.
By 2030 more than half of new car sales in the Northern Hemisphere were expected to be electric vehicles, he said.
"This is a game-changing programme of work. If we can successfully build up Geo40's green technology to commercial scale, New Zealand could become an international leader in technology for the sustainable supply of lithium, and help to build lasting action on climate change.
"It could also help meet New Zealand's 2050 carbon neutral target and create jobs to support the economic recovery. Expanding geothermal energy and advanced manufacturing opportunities in Taupō will be significant to diversify its local economy."
The government has previously invested in Geo40, with a $15m and equity funding from the Provincial Growth Fund in 2019.
"The investment is the first by the RSPF," Nash said.
"It delivers on a manifesto commitment to keep supporting regional economic development once the Provincial Growth Fund closed to applications.
"Regional leaders help set the strategic priorities for RSPF investment, which is seed funding as a catalyst for other investment."