Vulcan Energy Resources signs ‘zero carbon’ lithium deal for LG Energy Solution batteries

Vulcan Energy Resources signs ‘zero carbon’ lithium deal for LG Energy Solution batteries

Vulcan Energy Resources signs ‘zero carbon’ lithium deal for LG Energy Solution batteries 500 512 Energy Storage Journal

February 3, 2022: Vulcan Energy Resources said on January 31 it has signed a binding lithium hydroxide offtake deal with South Korean batteries manufacturer LG Energy Solution (LES).

LES, a battery supplier to European OEMs, will be supplied from the Zero Carbon Lithium project that Australia-listed Vulcan is developing in Germany’s southwest Upper Rhine Valley.

Vulcan managing director, Francis Wedin, said the agreement meant Vulcan is now fully sold out for its first five years of planned lithium production — which is “an important foundation toward securing project finance”.

The agreement with LES is for an initial five-year term that can be extended by a further five years, with a start of commercial delivery set for 2025. Vulcan said pricing will be based on market prices for lithium hydroxide.

The Korean batteries group will purchase between 41,000 to 50,000 tonnes of battery grade lithium chemicals over the duration of the agreement, which is subject to conditions including Vulcan securing project finance to build and commission its Zero Carbon Lithium facility.

LES is manufacturing lithium-ion batteries in Poland, US, China and South Korea, and is looking at expanding its production capacity.

Vulcan announced the completion of a pre-feasibility study for its Germany project in 2021. The company said its production process is more environmentally friendly because a hot salar brine feedstock produces heat for renewable power production — in addition to providing lithium.