Lithium developer Vulcan Energy Resources [ASX:VUL] rose as much as 8% on Friday after signed a binding collaboration agreement with Enel Green Power.
Despite the jump today, the VUL stock is down 45% year to date as ASX lithium stock valuations have taken a haircut this year.
Source: Tradingview.com
Vulcan Energy and EGP Take on Cesano
Vulcan Energy announced a binding collaboration agreement with Enel Green Power, the ‘largest geothermal energy producer in Italy’.
The binding agreement is to ‘explore and develop geothermal lithium in Italy.’
Vulcan and EGP are to commence a joint-scoping study under Vulcan’s Cesano licence, which covers 11.5 square kilometres of the Cesano area, 20kms from Rome.
EGP has explored and drilled several wells in the Cesano area previously, gathering data from local reservoirs.
VUL said the wells drilled by EGP in the Cesano area yielded ‘hot geothermal brine with high lithium values’.
Vulcan said it and EGP will ‘explore the development of geothermal lithium projects in the area and potentially in other locations in Italy.’
The Cesano license area will become co-owned 50:50 by Vulcan and EGP.
Vulcan’s Managing Director, Dr Francis Wedin, commented:
‘Vulcan is aiming to increase the future supply of our sustainable lithium product in response to significant customer demand, as we leverage our extensive experience in lithium extraction from heated brines to have a materially decarbonizing effect on global electric vehicle supply chains.
‘We welcome the opportunity to collaborate with Enel Green Power on the development of geothermal lithium. As the largest producer of geothermal renewable energy in Italy, Enel Green Power is a leader in its field and has strong, positive relationships in the region. We look forward to working with Enel Green Power to make a lasting and sustainable contribution to the local community.’
Vulcan’s EIA approval for Zero Carbon Lithium Project
Vulcan also updated the market on its Demo plant progress at the Zero Carbon Lithium Projects in Germany, having gained preliminary EIA approval for its Taro license and ‘growing community support across the region.’
Vulcan has now received initial approval to drill six wells in Taro for its lithium and geothermal exploration — relevant authorities deeming the wells environmentally-sound, speeding up the project development.
Vulcan’s Sorption Demo Plant, however, won’t expect commissioning until the latter part of Q4, behind schedule due to ‘previously flagged, unprecedented global supply chain issues.’
Further, VUL’s DFS for phase one renewable energy and lithium production is ‘progressing well’ but Vulcan flagged the increased likelihood of delays:
‘The Company flags that whilst its teams are working hard to achieve the H2 2022 completion target, local approval processes mean there is an increasing likelihood of the completion date moving into Q1 2023.’
Now, the world where most of us drive EVs is still ahead of us, meaning the world will need plenty of battery materials to get us there.
Our small caps expert Callum Newman recently penned a report on battery material stocks.
He thinks there are ASX stocks flying under the radar who could be the next ‘chosen ones’ — stocks tipped by Tesla to be their battery materials supply partners.
Callum thinks that one of the three battery stocks in his latest report ‘could be one of the most exciting nickel projects in the world. I’m not kidding’.
To find out more, read Callum’s latest battery materials report, ‘Elon’s Chosen One’, here.
Regards,
Kiryll Prakapenka,
For Money Morning
