Ann: San Jose Project and Permitting Update, page-47

The key is the battery factory.

The region in Extremadura is quite poor and needs some economic development, but a single Lithium mine does not cut it, they are trading a loss in their touristic revenue plus possible environmental damage and massive use of water which is really scarce in the area for a single mine that would bring around 300-400 jobs to the region, this is simply not worth it. Some of the local and regional politicians are basically saying that either more development comes (battery manufacturing) or they will oppose it.

The plan by the car manufacturers was to install the battery production in the north of Spain, where the cars are actually made. However, a few months ago it was announced that a company named Phi4Tech was planning to build a battery factory in Badajoz (south of Extremadura). Phi4Tech came hand in hand with a local mining company named Lithium Iberia, who owns another lithium project in Cañaveral (they were already mining in the same area, just not Lithium). The project in Cañaveral will be feeding the battery factory in Badajoz.
https://www.elplural.com/economia/extremadura-contara-planta-celdas-baterias-sur-europa_262678102
https://www.elsaltodiario.com/mineria/poderosos-intereses-tras-el-litio-de-canaveral-en-caceres

Another town, Plasencia, is also fighting to get the battery factory. This town is actually a bit closer to the mine than Badajoz.
https://cadenaser.com/emisora/2021/04/13/ser_norte_de_extremadura/1618319848_299413.html

The Cañaveral project is also facing a strong local opposition but since it is significantly farther away from a big town it has a lot more chances of going ahead.
https://www.elperiodicoextremadura.com/extremadura/2021/04/19/22-000-personas-oponen-mina-48476747.html

The previous regional leader said in April about Infinity's project that "the company never had the intentions of installing a battery manufacturing site, the company won't be opening an open pit mine near the city"
https://www.elperiodicoextremadura.com/caceres-local/2021/04/14/monago-subraya-junta-denegado-permisos-48376014.html

If you read between the lines, it is clear that the company made some promises or suggested that together with the Lithium mining and processing, there would be a battery manufacturing site, however I highly doubt that car manufacturers want to install 2 separate battery factories, or at least the chances are low.

So, what I'm getting at here is nobody wants to have the mines and everyone wants to have the battery factory. In my opinion, for Infinity's project to go ahead they would need to be able to install another battery factory in Caceres, or bring the one planned in Badajoz, but because the mayor is against the whole thing, he is not even trying to get the factory there. Lithium Iberia seems to be much better placed in this race than Infinity, despite being a worse project, just because it is in a better region for mining (there is already mining going on), they are locals with mining experience and they come with a partner. I am not even talking about the environmentalist or locals, those can be bypassed if the regional politicians (the mayor won't change stance).

Lithium Iberia is coming with a battery factory while Infinity Lithium seems to have failed at that, at least for now. So the politicians are telling them to f**k off. No batteries, no mine.

Now, I'm sure the Battery Alliance and Infinity are lobbying our PM and others in the central government to make the project happen, an ultimately they could bypass the regional and local governments. However, do not think that the EU needs that mine. There is plenty of Lithium reserves in Europe, yes it is better to mine the better prospects but not necessary.

What I think it's going to happen is that the Cañaveral project goes ahead together with the battery factory in Badajoz or Plasencia, and that really leaves Infinity in a bad position even if it has the best reserves and better economical project. It could eventually get clearance if in a near future they find a partner to install a battery factory or expand the existing one and Lithium Iberia can't feed it.

Take care