- Vulcan Energy (VUL) signs an agreement with Nobian for the development of its Central Lithium Plant (CLP) in Germany
- Nobian is considered a European leader in the production of essential chemicals and is Europe’s fourth-largest chlor-alkali producer
- Vulcan and Nobian will assess the feasibility of a joint project for the development, construction, and operation of the CLP
- Once a definitive feasibility study (DFS) has been completed, investment from Nobian will be discussed on market terms
- Shares are trading 1.19 per cent higher at $10.22
Vulcan Energy (VUL) has signed an agreement with Nobian for the development of its Central Lithium Plant (CLP) in Germany.
Nobian is considered a European leader in the production of essential chemicals. It employs approximately 1600 people and recorded revenues of €1 billion (A$1.58 billion) in 2020.
It is Europe’s fourth largest chlor-alkali producer and has extensive electrolysis operational experience. Chlor-alkali uses an electrolysis process which is similar to part of Vulcan’s flowsheet.
One of Nobian’s operations is located at the Höchst chemical park near Frankfurt, where Vulcan has secured a plot for construction of its CLP.
Under the memorandum of understanding and term sheet, Vulcan and Nobian will assess the feasibility of a joint project for the development, construction, and operation of the CLP, including the electrochemical conversion process of lithium chloride to battery quality lithium hydroxide.
The joint development project is phased with a joint progress decision at the end of the second phase. Once a definitive feasibility study (DFS) has been completed, investment from Nobian will be discussed on market terms.
Phase one will comprise of a joint DFS for the development, construction, and operation of the CLP.
Phase two will consist of operation of Vulcan’s electrolysis demonstration plant at Nobian’s existing site at Höchst, Frankfurt.
Finally, phase three includes design/engineering, construction start-up and joint
operation of the CLP at commercial scale. During this phase, Vulcan and Nobian will discuss chlorine and hydrogen offtakes (via pipe), which are planned by-products of Vulcan’s CLP.
Managing Director Dr. Francis Wedin said the agreement strengthens the company’s operational experience and expertise in electrolysis.
“Our partnership with Nobian is consistent with our strategy to capitalise on the
synergies that are available to us with existing chemical producers, due to our location in Germany, the largest chemical producing country in Europe,” he said.
“Nobian’s experience will contribute to de-risking our planned scale-up and build-out, towards our goal of starting production from our Zero Carbon Lithium Project in 2024.”
Shares were trading 1.19 per cent higher at $10.22 each at 12:59 pm AEDT.