- Vulcan Energy Resources (VUL) accepts a $76 million investment from global automaker Stellantis, making it the company’s second-largest shareholder
- Stellantis will claim an eight per cent stake in the company, following the issue of around 11.45 million shares at $6.22 each
- The funds will be directed towards Vulcan’s production expansion drilling in its Upper Rhine Valley Brine Field in Germany
- In addition, the companies have extended the binding lithium hydroxide offtake agreement by five years, to 2035
- Shares in Vulcan Energy Resources were up 15.6 per cent to $5.78 as of 10:12 am AEST
Vulcan Energy Resources (VUL) has accepted a $76 million investment from global automaker Stellantis, making it the company’s second-largest shareholder.
Stellantis will claim an eight per cent stake in Vulcan, following the issue of around 11.45 million shares at $6.22 each.
The funds will be directed towards Vulcan’s production expansion drilling in its Upper Rhine Valley Brine Field in Germany.
In addition to the investment, the companies have extended the binding lithium hydroxide offtake agreement by five years, to 2035.
Managing Director Dr Francis Wedin said the companies were aligned in their decarbonisation and electrification goals.
“It is encouraging to see a leading automaker investing in local, decarbonised lithium production for electric vehicles,” Dr Wedin said.
“As our largest offtaker, we look forward to deepening our relationship with Stellantis as a substantial shareholder in Vulcan and our Zero Carbon Lithium business.”
The company said the investment represents the world’s first upstream investment in a listed lithium company by a top-tier automaker.
Shares in Vulcan Energy Resources were up 15.6 per cent to $5.78 as of 10:12 am AEST.