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How Vulcan is helping to create a zero carbon future

Green car

Located at the heart of the European auto and lithium-ion battery industry, ASX listed Vulcan Energy Resources (ASX:VUL) is working to bring “Zero Carbon” lithium to Europe’s electric vehicle (EV) supply chain.

Vulcan is on track to develop Europe’s — and the world’s — first Zero Carbon lithium project, while generating a renewable energy by-product.

There is an unprecedented ramping up of lithium-ion and associated cathode production in Europe.

With demand from the European Union (EU) for battery-quality lithium hydroxide forecast to equal the entire current global demand by the early 2020s, Vulcan has picked an opportune time to try to transform the EV market.

Vulcan has pointed to forecasts showing that the EU is set to require the equivalent of the entire current global battery quality lithium demand by the mid-2020s, with 2023 being the main inflection point.

Euro battery production & lithium demand

There is currently zero European Union production of battery-quality lithium hydroxide, let alone a CO2-neutral product.

Consequently, a severe battery-quality lithium chemical supply shortfall is developing in the European Union, creating ideal conditions for Vulcan.

Top grades at Vulcan’s project

Vulcan has the largest lithium project in Europe, located in the Upper Rhine Valley of Germany.

The project contains a globally significant Exploration Target of 10.73 – 36.20Mt of contained Lithium Carbonate Equivalent (LCE).

It should be noted that the Exploration Target’s potential quantity and grade is conceptual in nature, and that there has been insufficient exploration to estimate a Mineral Resource, making it uncertain whether further exploration will result in the estimation of a Mineral Resource.

The company has commenced a confirmatory brine re-sampling programme from well-head sites within the brine field, with a view to establishing a maiden JORC resource.

The results of this program are expected within the coming weeks.

Vulcan has also recently signed a Memorandum of Understanding (MoU) with Pfalzwerke geofuture GmbH, part of the German utility and international energy provider Pfalzwerke Group.

The MoU constitutes an initial collaboration period, during which Pfalzwerke geofuture will supply live brine and well data from its operational geothermal power plant for Vulcan to use in its prefeasibility study (PFS).

The MoU is an endorsement of Vulcan’s progress in terms of moving to a zero carbon lithium producer.

Highlighting the significance of this development in terms of accelerating Vulcan’s aim of bringing a zero carbon lithium hydroxide product to market, managing director Francis Wedin said, “Partnering with the Pfalzwerke group, a well-respected German utility, is a transformational step for the company.

‘’It brings our goal of producing a Zero Carbon LithiumTM hydroxide product in Germany much closer to becoming a reality.

‘’We now have access to a lithium-rich producing geothermal brine operation, so that feasibility studies and potentially first lithium production can be achieved in a much shorter timescale without the immediate need to drill our own geothermal wells.’’

The importance of Pfalzwerke

Pfalzwerke geofuture GmbH is the owner-operator of the Insheim geothermal plant, which has been operating successfully for seven years.

The plant will provide Vulcan with predictability of supply.

Pfalzwerke has established itself as a German and international energy provider with annual revenue in excess of €1.5 billion. Its subsidiaries and partners also offer solutions for all aspects of electricity and heating.

Importantly for Vulcan, Pfalzwerke is increasing its share of renewable energy sources such as photovoltaic, biomass, geothermal and wind power.

With approximately 430,000 private and 20,000 business customers, as well as power supplies to 60 municipalities, Pfalzwerke Gruppe is one of the most important energy supply companies in Germany.

This is crucial for Vulcan as it should provide a ready end-market for the group’s product.

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