Emerging Australian miner Core Lithium has given the go-ahead to the Northern Territory’s first lithium project as soaring prices for the key electric battery ingredient breathe new life into the industry.

ASX-listed Core told investors on Thursday that it would immediately begin work on the Finniss lithium project near Darwin and hoped to deliver its first production of hard-rock lithium concentrate known as spodumene from here the fourth quarter of fiscal 2022.

“This is an important milestone, not only for Core, but also for the Northern Territory,” said Core Lithium Non-Executive Chairman Greg English.

“We are delighted to develop the territory’s first lithium project, to invest in the local economy and to create hundreds of new jobs. “

Lithium prices, which fell sharply from 2018 in an influx of supply exceeding demand, have recovered significantly this year.

The commodity is a key ingredient in electric batteries used in cell phones, laptops and, most importantly, electric vehicles (EVs). While electric vehicles now account for around 3% of new sales, adoption is increasing in China, the United States and Europe, and global governments are launching “green” post-pandemic stimulus packages targeting electrification transports.

Investors and analysts are showing renewed optimism about the dawn of the electric vehicle era and betting billions on the future of lithium products. BHP, Australia’s largest resource company, described 2020 as a ‘inflection point’ for the shift to electric vehicles, as Elon Musk’s Tesla has sold over half a million battery-powered cars and sales in Europe more than doubled.

Core Lithium chief executive Stephen Biggins said Thursday’s final investment decision (FID) for Finniss was the culmination of more than five years of work to put together a “low-risk lithium project,” low capitalization and high margin “.

“IDF places Core firmly at the forefront of new global lithium production at just the right time as lithium demand and prices increase rapidly,” he said.

The company’s shares rose 3.9% to 40.5c at 1:50 p.m.