Zero Carbon Lithium production is a revolutionary concept that Vulcan Energy is progressing and the company is advancing studies to produce battery grade Lithium Hydroxide (LiOH) in a non-invasive, environmentally friendly approach. Vulcan Energy’s assets are in the Upper Rhine Valley of Germany. Vulcan Energy is dual listed on the Frankfurt and Australian Stock Exchange with a market capitalisation of c. 806m AUD.

Vulcan Energy is planning to tap into the hot underground systems in the Upper Rhine Valley by drilling geothermal wells and pumping lithium-rich brine to the surface before passing it through an electrical generator that is used to power a lithium separator. The extracted lithium hydroxide (LiOH) is collected and sold along the lithium-ion battery supply chain to downstream cathode and anodes battery component manufacturers. Additionally, the excess energy not used in the separation process is sold into the national grid, offering a second revenue stream for Vulcan Energy. The cooled, LiOH depleted brine is then forecast to be drained back underground into its natural reserve, closing the production loop.

Vulcan Energy’s Zero Carbon Lithium project produced a pre-tax NPV8% of EUR 2.8bn and an 31% IRR producing 40ktpa LiOH, the energy business produced a pre-tax NPV6% of EUR 0.7bn and 17% IRR for 74MW of energy generation. 

Asset Location

Germany

Exchange/Ticker

ASX: VUL