Shares of Zinnwald Lithium surged on Wednesday after the German state of Saxony officially endorsed the company’s lithium project, recognizing its strategic importance in ensuring an independent and sustainable supply of critical raw materials. Saxony’s economics minister, Dirk Panter, emphasized that the project is a high-priority initiative that could help Germany and the broader European Union reduce their dependence on foreign mineral supplies.

“In light of increasing global tensions, reducing reliance on external sources of raw materials is essential for Saxony, Germany, and the EU,” Panter said in a statement. The endorsement reflects the growing importance of lithium in Europe’s transition toward clean energy and electric mobility.

Following the announcement, Zinnwald Lithium’s stock price surged more than 12%, reaching 5.9 pence in London trading by mid-afternoon. This increase pushed the company’s market capitalization to approximately £27.5 million ($35.5 million), demonstrating investor confidence in the project’s potential.

Earlier this week, the company published a pre-feasibility study outlining development plans for its namesake project, which is Europe’s third-largest hard rock lithium deposit. According to the study, mining operations could begin as early as 2030. The project is strategically located near Europe’s chemical and automotive industries, making it an essential component of the region’s efforts to strengthen its battery supply chain.

Once operational, the Zinnwald mine is expected to produce 18,000 tonnes of lithium hydroxide monohydrate (LHM) annually in its initial phase, which is sufficient to supply batteries for approximately 800,000 electric vehicles. A planned second phase would expand production to 35,100 tonnes per year, with the mine’s operational lifespan projected to extend over four decades.

The European Commission recently identified 47 strategic projects aimed at accelerating the development of the EU’s critical minerals sector and reducing reliance on imports, particularly from China. While the Zinnwald project was not included in this list, Saxony’s government has expressed its intention to advocate for national-level support in Berlin. This backing could open further funding opportunities and regulatory incentives to accelerate the mine’s development.

The endorsement from the Saxony government highlights the increasing recognition of lithium as a vital resource in Europe’s green energy transition. With global lithium demand rising due to the rapid expansion of the electric vehicle market, Zinnwald Lithium’s project stands to play a crucial role in securing Europe’s supply chain independence.

As geopolitical uncertainties continue to impact global trade, securing domestic sources of critical raw materials has become a priority for European governments. Zinnwald’s potential to contribute to this goal has now gained official recognition, positioning the company as a key player in Europe’s push for a more self-sufficient lithium supply chain.