Vulcan locks in third customer

VULCAN Energy Resources has secured a further binding offtake agreement, this time with the owner of Europe’s first cathode materials plant.
Vulcan locks in third customer Vulcan locks in third customer Vulcan locks in third customer Vulcan locks in third customer Vulcan locks in third customer

Haydn Black

Reporter

The fledgling lithium chemicals firm already has binding offtake agreements with LG Energy Solution and Renault Group, and has just announced a five-year agreement for the delivery of between 28,000-42,000 tonnes of battery grade lithium hydroxide from 2025.
 
The buyer, Umicore, is in the final stages of switching on its plant at Nysa, Poland, which it intends will be a carbon neutral operation, selling materials to battery cell makers.
 
The agreement with Umicore can be extended by a further five years and covers about 20% of Vulcan's planned output.
 
Pricing will be based on market prices on a take-or-pay basis.
 
To kick off the contract, Vulcan only needs to start production and achieve full product qualification.
 
The company recently reported its first production of battery-quality lithium hydroxide monohydrate from pilot operations in Germany, saying the samples exceeded best on market-grade specifications required from offtake customers.
 
Its Zero Carbon project will recover lithium from brines pumped from geothermal wells in the Rhine Valley, with a planned commercial-scale plant to be built within the Hochst chemical park, outside Frankfurt, one of Europe's largest chemical sites.
 
Vulcan managing director Francis Wedin said Vulcan now had a diversified mix of offtakers from the cathode, battery. and automotive sectors. 
 
Further agreements are expected in the near term.
 
Last week Vulcan closed a A$3.1 million share purchase plan, with the directors to put in $900,000 on the same terms, pending approval. It had been seeking up to $21 million.
 
It follows a $200 million placement at $13.50 per share, to help accelerate exploration initiatives and expand its dual strategy of producing lithium and renewable energy.
 
The company already had cash of $111 million after raising $120 million at $6.50 earlier this year.
 
Its project hosts Europe's largest lithium resource of 15.85 million tonnes of lithium carbonate equivalent. 
 
A definitive feasibility study is due for delivery in mid-2022.
 
Vulcan's shares have traded between $1.03 and $16.65 over the past year, and were up 9% in early trade at $12.57.