- Vulcan Energy (VUL) completes a binding lithium offtake agreement with major automotive manufacturer, Renault Group
- Renault has planned to purchase up to 32,000 metric tonnes of battery grade lithium chemicals over the duration of the agreement with Vulcan
- The deal will see Renault avoid up to 700 kilograms of carbon dioxide equivalent emitted for a 50-kilowatt hour battery
- The agreement is for an initial six-year term, with the start of commercial delivery set for 2026
- Vulcan Energy last traded at $10.18 on November 19
Vulcan Energy (VUL) has completed a binding lithium offtake agreement with a major automotive manufacturer, Renault Group.
A binding term sheet with Renault was first signed on August 2, conditional on the execution of a definitive agreement by November 20.
Following the launch of Renault ElectriCity, a new electric car manufacturing line in Europe, Renault will acquire between 26,000 and 32,000 metric tonnes of battery-grade lithium chemicals throughout the course of the deal.
Vulcan is a lithium producer aiming to be the world’s first to produce net zero greenhouse gas emissions. Its Zero Carbon Lithium Project looks to supply the lithium-ion battery and electric vehicle market in Europe, which is considered the fastest growing in the world.
Through its new partnership with Vulcan, Renault will be able to avoid up to 700 kilograms of carbon dioxide equivalent emitted for a 50-kilowatt hour battery.
Vulcan’s Managing Director Francis Wedin said the agreement means Vulcan’s Zero Carbon Lithium business will be directly enabling Renault to meet its commitment of producing carbon-free electric vehicle batteries and become carbon neutral.
“For Vulcan, the agreement is consistent with our strategy to enter into long term, stable supply agreements with companies that share our ethos on sustainability and decarbonisation ambitions,” Dr Wedin said.
The agreement is for an initial six-year term, with the start of commercial delivery set for 2026.
Vulcan Energy last traded at $10.18 on November 19.