PARIS: French minerals company Imerys said on Monday it wanted to become the leading supplier of lithium in Europe through a mining project in France.

The announcement comes as European miners rush to launch domestic production of the raw material, a key component in electric vehicle batteries which is currently sourced almost entirely from outside the bloc.

Imerys said results of surveys carried out at its Beauvoir mine in the Allier department in central France suggest it will be able to produce 34,000 tonnes of lithium hydroxide for at least 25 years from 2028, enough to supply around 700,000 electric car batteries.

The company’s shares rose by 5% in early Paris trade. Electric cars are a key plank of European Union plans to cut emissions, and the bloc is trying to reduce reliance on battery supplies from Asia through projects with European-based carmakers and battery specialists.

Almost all the critical minerals currently come from outside the continent, with China dominating the global supply chain.

The world’s main lithium suppliers also include Australia and Argentina.

European Commission President Ursula von der Leyen said last month that “lithium and rare earths will soon be more important than oil and gas,” adding that the bloc’s demand for rare earths alone will increase fivefold by 2030.

Various miners are exploring domestic European lithium projects including in Austria, Germany and the Czech Republic. Imerys’ French rival Eramet is exploring a project in the Alsace region.

Imerys said its Beauvoir project is estimated to involve capital expenditure in its construction of around 1 billion euros, equating to an estimated cash cost per kilo of between 7 and 9 euros per kilo.

The site has been producing kaolin for ceramics since thelate 19th century.