Vulcan Energy Resources Ltd (ASX: VUL), has been granted five new exploration licenses for geothermal energy, and lithium in the Upper Rhine Valley, Germany.
The licenses cover 325 sq. km of area which is considered by Vulcan to be prospective for deep geothermal and lithium brine and increases Vulcan’s granted license area by nearly 50% to over 1,000 sq. km.
Vulcan’s license holding stretches across three states in the Upper Rhine Valley, with the latest licenses in the states of Rhineland-Pfalz complementing existing licenses in this state, as well as in Hessen and Baden-Württemberg.
The company is targeting completion of its Phase 1 Definitive Feasibility Study (DFS) in H2 2022 and first commercial production of lithium by 2024.
Managing Director, Dr Francis Wedin, said Vulcan is seeking to grow its Zero Carbon Lithium Project to service the European market, following strong demand from offtake customers for both lithium chemicals and renewable heating. These licenses will potentially provide a larger pipeline of projects, as Vulcan works to integrate further production capacity and additional project areas into its Phase 1 and 2 plans.
“Our core mission is to build shareholder value by having a materially decarbonising effect on the lithium supply chain for battery electric vehicles, and on energy production in Europe. To do this, we aim to further grow our Zero Carbon Lithium Project,” Dr Wedin said.
“Following the signing of binding lithium offtake agreements with Volkswagen Group, Stellantis, Renault Group and Umicore, as well as a binding term sheet with LG Energy Solution, Vulcan’s current plans for lithium production are now fully booked for the first five to six years of planned operation, a unique achievement which is testament to our team and the uncompromising environmental credentials of the Zero Carbon Lithium Project.
“We have increasing demand from our customers for further supply. These new exploration licenses give us significant potential to further scale up our project as the market continues to grow, whilst also meeting the increasing demand for renewable heat and power.
“The new exploration licenses are consistent with our strategy to leverage the unique experience of our in- house team, notably the geological expertise of our in-house geothermal engineering and geology company GeoT, to identify areas which have potential for combined geothermal renewable energy and lithium developments in the Upper Rhine Valley.
“It is encouraging to see license approvals progressing efficiently, in line with the German State Governments’ commitment to expedite planning and approval timelines for new renewable energy projects and their general support for sustainable approaches to lithium production and deep geothermal energy technologies.”
For further information please visit: https://v-er.eu/
