Vulcan Energy signs long-term lithium supply deal with Renault
Category: #business |   By Pankaj Singh |   Date: 2021-08-02

Vulcan Energy signs long-term lithium supply deal with Renault
  • The agreement involves supply of around 6,000 to 17,000 tons of lithium annually to Renault SA.
  • Renault aims to make 90% of its models fully electric by 2030.

Australia-based lithium producer Vulcan Energy Resources Limited has reportedly signed an agreement promising supply of battery-quality lithium hydroxide chemical to French automaker Groupe Renault for a period of five years starting in 2026.

The agreement involves supply of 6,000 to 17,000 tons of lithium hydroxide yearly to Renault from Vulcan Energy’s brine and geothermal deposits in the Upper Rhine Valley of Germany. If both the companies agree, the deal might be renewed, cited sources with reliable information.

This news comes amid increasing efforts by car manufacturers to launch EVs to meet the stringent emission standards announced by governments across the world.

Notably, Renault SA aims to make 90% of its models fully electric by 2030. The French automaker also stated that Vulcan’s lithium extraction process has a zero-carbon footprint which was the primary motivating factor behind signing this deal.

The three year old startup is planning to invest USD 2 billion to set up geothermal facilities and power stations to extract lithium and start production of the silvery-white metal by 2024.

For the record, geothermal projects usually involve the extraction of super-hot brine from underground reservoirs. The heat of this lithium-rich brine is utilized to produce electricity post which lithium is extracted from it.

The brine is then injected back into the earth. This makes the process more sustainable as compared to other extraction methods.

Meanwhile, Vulcan Energy Resources Limited recently signed a memorandum of understanding (MOU) to supply lithium to the Netherlands-based automotive company Stellantis N.V. The company also plans to sell to sell lithium hydroxide to LG Chem’s Germany-based battery unit from 2024.

 Source Credits –

https://money.usnews.com/investing/news/articles/2021-08-01/renault-locks-in-lithium-supply-from-vulcan-energy-in-five-year-deal

  • shareShare
  • Twitter
  • Facebook
  • LinkedIn


About Author

Pankaj Singh     Twitter

Pankaj Singh

With a commendable experience of content creation under his belt, Pankaj Singh, a qualified Post Graduate in Management, boasts of having worked as a freelance writer and an insurance underwriter. Additionally, Pankaj has also enriched his qualification portfolio with Read more...

More News By Pankaj Singh

Shaurrya Teleservices & Airwaive team up to expand 5G network in India

Shaurrya Teleservices & Airwaive team up to expand 5G network in India

By Pankaj Singh

Airwaive and Shaurrya Teleservices (STS) has reportedly announced an international strategic collaboration to jointly build 5G wireless network service in India, assisting telecom providers in advancing 5G technology throughout the nation. Notably...

Valneva looking to capitalize on growing prevalence of Lyme disease

Valneva looking to capitalize on growing prevalence of Lyme disease

By Pankaj Singh

French drugmaker Valneva SE is now reportedly betting on its vaccine VLA15 for treating climate change-induced Lyme disease, as it looks to capitalize on growing prevalence of tick-borne illnesses following the disappointing sales of its COVID-19 vac...

Reliance Jio becomes the largest buyer of India’s USD 19 Bn 5G sale

Reliance Jio becomes the largest buyer of India’s USD 19 Bn 5G sale

By Pankaj Singh

Reliance Jio Infocomm Ltd., owned by billionaire industrialist Mukesh Ambani, was found to be the most aggressive participant in the government-backed 5G auction in India where several telecom behemoths agreed to invest at least USD 19 billion. Jio w...