Vulcan Energy Resources, an Australia listed lithium manufacturer, has inked a second contractual lithium hydroxide offtake deal with Renault Group, on 22nd Nov.
Following the introduction of Renault ElectriCity, a new electric car manufacturing line in Europe, the firm will acquire between 26,000 and 32,000 metric tonnes of battery-grade lithium chemicals throughout the course of this deal. However, the financial details were not provided.
Vulcan, one of many businesses developing a direct lithium extraction (DLE) technology that utilizes less land and freshwater, sealed an agreement with Renault in August to provide 6,000 to 17,000 tonnes of lithium annually from its geothermal brine reserves in Germany beginning in 2026.
Vulcan’s Zero Carbon Lithium Project seeks to generate renewable geothermal energy as well as lithium hydroxide from the same underground brine source in Germany, and with that, the group aspires to be the world’s first lithium manufacturer to emit zero greenhouse gases.
The relationship with Vulcan will enable Renault Group to eliminate between 300 and 700 kg of CO2-equivalent generated for a 50-kWh battery, which is aligned with Vulcan’s aim to decarbonize the battery materials market.
Renault already has the lithium supply coming in from supply agreements with Belgian recycling group Umicore, Stellantis NV, a Netherlands based automaker and South Korea’s Lg Chemical Ltd.
Since, lithium is a key component in the production of lithium-ion batteries, which are utilized in electric cars and therefore have swiftly gained traction as the globe shifts toward greener kinds of energy.
Vulcan proposes to satisfy the European market needs for lithium by decreasing the high carbon and water impact of manufacturing, as well as complete reliance on imports. The firm intends to supply the Eu lithium-ion battery and electric car markets.