Join our daily newsletter At The Bell to receive exclusive market insights
- Vulcan Energy Resources (VUL) and French car manufacturer, Renault Group, sign a lithium offtake term sheet
- Renault agrees to buy between 6000 and 17,000 metric tonnes of lithium chemicals per year from Vulcan’s Zero Carbon Lithium Project in Germany
- Offtaking battery-grade lithium products from Vulcan aligns with Renault’s strategy of offering sustainable electric vehicles made in Europe
- The deal is for an initial five years but can be extended if both companies agree with a start of commercial delivery set for 2026
- Company shares are up 2.55 per cent to trade at $10.05 at 11:16 am AEST
Vulcan Energy Resources (VUL) and French car manufacturer Renault Group have signed a lithium offtake term sheet for an initial five years.
Renault has agreed to purchase between 6000 and 17,000 metric tonnes of battery-grade lithium chemicals per year.
The lithium products will be sourced from Vulcan’s Zero Carbon Lithium Project in Germany, which aligns with Renault’s goal to offer sustainable electric vehicles (EVs) that are made in Europe.
Renault Purchasing and Managing Director of Alliance Purchasing Organisation Gianluca De Ficchy was happy to announce the partnership.
“We are very proud to partner with a European lithium producer with a net zero greenhouse gas emissions such as Vulcan Energy,” Mr De Ficchy said.
“Our environmental and social responsibility is at the heart of the Renaulution and this must also apply to the providers we partner with if we want to create real value and offer the most sustainable vehicles in the market.”
The automotive player aims to achieve carbon neutrality worldwide by 2050. By purchasing sustainably-produced product from Vulcan, it can avoid from 300 to 700 kilograms of carbon dioxide for a 50-kilowatt hour battery.
Vulcan Managing Director Francis Wedin is pleased to be partnering with a company who shares the same ethos on sustainability.
“Perhaps most importantly, the number one pillar of Renault’s strategy is ‘Carbon neutrality – Green as a business’, with a commitment to producing carbon-free batteries and becoming carbon neutral,” Dr Wedin said. “We look forward to a long and productive relationship between Vulcan and Renault going forward.”
While the offtake deal is for a five-year term, it can be extended if both companies agree with a start of commercial delivery set for 2026.
The binding term sheet is conditional on executing a definitive agreement by November 20 2021.
Company shares were up 2.55 per cent to trade at $10.05 at 11:16 am AEST.
