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- Vulcan Energy (VUL) signs binding lithium hydroxide offtake agreement with Brussels-based Umicore
- Over an initial term of five years, Umicore will purchase between 28,000 and 42,000 tonnes of lithium hydroxide
- Umicore’s plant in Poland will begin production at the end of this year, with Vulcan to start making deliveries in 2025
- Shares in Vulcan Energy are up 7.27 per cent to $12.40 at 12:12 pm AEDT
Vulcan Energy (VUL) has signed a binding offtake agreement with Umicore for lithium hydroxide produced at its Zero Carbon Lithium Project in Germany.
Based in Brussels, Umicore has built Europe’s first cathode materials plant in Nysa, Poland, and is expected to begin production at the end of this year.
According to the agreement, Vulcan will start delivering lithium hydroxide to Umicore in 2025 with an initial term of five years, during which Umicore will purchase between 28,000 and 42,000 tonnes of the raw product.
Prices for the lithium hydroxide will be based on market valuations on a “take-or-pay” basis.
“In light of the accelerating transition to electromobility it is crucial to secure a reliable supply of critical raw materials, that is also environmentally and socially responsible,” Umicore CEO Mathias Miedreich said.
“These long-term supply agreements mark another important step in Umicore’s sustainable procurement strategy and demonstrate our strong commitment to support the growth of our global customers through the creation of sustainable and regional battery materials value chains.”
In addition to lithium hydroxide, Vulcan’s Zero Carbon Lithium Project will also produce renewable geothermal energy from the same deep brine source in Germany’s Upper Rhine Valley.
In doing so, the company said it aimed to reduce the high carbon and water footprint of production, as well as the reliance on imports, while catering to Europe’s rapidly growing lithium-ion battery and electric vehicle market.
“Umicore, a leading cathode manufacturer and the first in Europe, will be a valuable offtake partner for Vulcan, as a direct consumer of Vulcan’s lithium hydroxide products,” Vulcan’s Managing Director Francis Wedin said.
“With our recent announcements of agreements with LG Energy Solution and Renault Group, we now have a diversified mix of offtakers from the cathode, battery and automotive sectors, with further agreements expected in the near term.”
Shares in Vulcan Energy were up 7.27 per cent to $12.40 at 12:12 pm AEDT.
