ASX-listed Vulcan Energy has inked a binding lithium hydroxide offtake agreement with cathode materials producer Umicore at its Zero Carbon lithium project, in Germany.
The agreement spans an initial five-year term, starting with commercial delivery in 2025. Umicore will purchase a minimum of 28 000 t and a maximum of 42 000 t of battery grade lithium hydroxide over the duration of the agreement, with the pricing to be based on market prices on a take-or-pay basis.
“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. 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,” said Vulcan MD Francis Wedin.
“Importantly, Umicore also shares our ambition to decarbonise the battery supply chain in Europe, by building a carbon neutral cathode plant in Poland. We look forward to a long and fruitful cooperation with Umicore as we progress our Zero Carbon lithium project.”
Vulcan recently secured a site for its planned lithium hydroxide plant, at the Höchst Chemical Park, outside of Frankfurt.
Vulcan is targeting Phase 1 commercial production for 2024.
Stage 1 of the production plant would consist of a direct extraction and lithium plant at an operating, producing geothermal well and power plant, while Stage 2 of the operation would consist of the drilling of ten new geothermal production wells, the construction of a new, combined geothermal, direct lithium extraction and lithium hydroxide plant at Vulcan’s Ortenau licence.