Lithium and renewable energy producer Vulcan Energy [ASX:VUL] has put out a progress update on its major green energy and carbon-neutral project — the Zero Carbon Lithium project in the Upper Rhine Brine Field in southwest Germany.
VUL shares were trading for $4.19 apiece at the time of writing, earlier this morning, having dropped by nearly 10% in early trade.
The VUL share price has dropped by 43% in the last 52 weeks and is down by half in its sector average.
Compared with Core Lithium [ASX:CXO] and Global Lithium [ASX:GL1], who have climbed by 25% and 15% in the last month respectively:
Source: TradingView
Vulcan’s Zero Carbon Lithium update
Vulcan Energy has now successfully installed its Lithium Extraction Optimisation Plant in Landau — the first of a new type of lithium chloride industry in Germany and in Europe. VUL pointed out that it is near the largest lithium resource in Europe — already with some important lithium offtake agreements.
Vulcan also said Phase One of its commercial lithium project has now acquired its first land package — initiating discussions with international contractors for equipment and service providers.
This month, VUL successfully raised A$109 million before costs from institutional investors in Australia, Europe, the US and Hong Kong. Such funds will be put mainly towards purchasing of long lead items for the Phase One commercial project.
In terms of the Landau Lithium Extraction Optimisation Plant (LEOP), the group said it has now installed the crystalliser developed by NovoPro.
Vulcan says the installation of the crystalliser is the last step in the process for setting up the lithium extraction process — consisting of concentration and after purification — for the plant to produce lithium chloride concentrate from its renewable-heated brine.
Source: VUL
The lithium explorer said that once its plant is up and running, LEOP will ‘herald the birth of a new domestic lithium industry in Germany and Europe’ by producing sustainably produced products with zero fossil fuels in the process.
LEOP will be in the vicinity of an area that represents the largest lithium resource in Europe — the Upper Rhine Valley — and in a prime location for branching out to supply domestic battery electric vehicle production.
Normal operations have also recommenced at the Insheim geothermal renewal energy plant, offering renewable power to locals.
Vulcan already has binding lithium offtake agreements with some of the biggest EV producers and battery manufacturers in the world. It will be able to contribute to supplying the Europe battery and critical raw material supply chain from close proximity.
Vulcan currently has €166 million (AU$270 million) cash and no debt, and says it is led by a ‘300-strong team.’
The group is choosing to apply its funds to rapidly advance the project execution of its Phase One commercial project.
From lithium to copper — the best of 2023
For the last two years, lithium was heralding the commodity headlines, but there’s a not-so-new player in town that’s rapidly grabbing attention.
Copper is a topic of the moment, and there are certain stocks you should know about in 2023.
If you subscribe to Fat Tail Commodities, you can get a hold of commodities expert James Cooper’s most recent copper stock report for free.
Not only will you get instant access to three of the latest top stock picks for the copper industry, but also ongoing access to integral information that every resource investor should know but might not.
Learn about the copper supply crisis and how you can position yourself to take advantage of changes that are already happening.
Interested in jumping at a potentially lucrative opportunity reserved for the shrewdest of investors?
Keen to get started with three not-to-be-ignored copper stock tips?
Then you should click here today.
Regards,
Fat Tail Commodities
Comments