Nov 22 (Reuters) - Australia-listed lithium developer Vulcan
Energy Resources Ltd said on Monday it signed a second
supply deal with Renault SA from its German project,
sending its shares up 9%.
The announcement came after Vulcan also revealed that it has
sought a pause on part of the work at the second phase of its
German project, but said it did not anticipate any delays to its
Under the latest Renault deal, the French automaker will
purchase between 26,000 to 32,000 metric tonnes of battery-grade
lithium chemicals from Vulcan for an initial six-year period.
Financial terms were not disclosed.
The second supply agreement between Vulcan and Renault is
set to start commercial delivery in 2026 under the deal, Vulcan
said in a statement https://vul.live.irmau.com/site/PDF/346fc118-1b04-4c8c-98e0-50cc3534ff14/BindingOfftakeAgreementSignedwithRenault.
Vulcan, which is one of a number of companies testing a
direct lithium extraction (DLE) method that uses less land and
groundwater, signed a deal in August https://www.reuters.com/business/autos-transportation/renault-locks-lithium-supply-vulcan-energy-five-year-deal-2021-08-02
to supply 6,000 to 17,000 tonnes of lithium annually to Renault
from its geothermal brine deposits in Germany starting in 2026.
But it has run into opposition from some local
municipalities, and has asked Germany's regulators to pause
development work for its second phase of growth while it
reengages with stakeholders, it said in a filing on Friday.
"Vulcan has requested this application review be paused
whilst it engages further with local stakeholders to ensure
alignment," it said adding that it did not expect delays to its
development timeline. Vulcan's initial definitive feasibility
study is due mid next year.
Research house JCapital flagged the potential for community
opposition to derail Vulcan's operations when it released a
short-seller report last month, which Vulcan dismissed as
inaccurate and misleading.
Vulcan already has lithium supply deals with Belgian
recycling group Umicore and Netherlands-based automaker
Stellantis NV, as well as with South Korea's LG Chem
Ltd. Shares traded last at $11.03, up 8.4%.
Lithium is a core component for making lithium-ion batteries
used in electric vehicles. It has gained traction rapidly as the
world moves towards cleaner forms of energy.
(Reporting by Melanie Burton in Melbourne and Yamini C S in
Bengaluru; Editing by Peter Cooney and Muralikumar Anantharaman)