Karlsruhe -- Vulcan Energy has signed a binding Lithium hydroxide offtake agreement ("Agreement") with Umicore, a leader in cathode materials production used in lithium-ion batteries for electrified transportation.
In Nysa, Poland, Umicore has built the first cathode materials plant in Europe. The plant is expected to start production around year end of 2021 and the materials that will be produced in Nysa will be sold to battery cell makers who produce the batteries for electric vehicles. Umicore has a net zero emission Greenhouse Gas (GHG) goal by 2035 part of its "Go to Zero" initiative and its European cathode plant will be carbon neutral as of the start of production.
The Agreement is for an initial five-year term and the start of commercial delivery
is set for 2025. Umicore is to purchase a minimum of 28,000 tonnes and a maximum of 42,000 tonnes of battery grade lithium hydroxide over the duration of the agreement.
Pricing will be based on market prices on a take-or-pay basis. Conditions precedent include successful start of commercial operation and full product qualification.
Managing Director Francis Wedin commented: "Umicore, a leading cathode manufacturer and the first in Europe, will be a valuable offtake partner for Vulcan, as a direct consumer of Vulcan's lithium hydroxide products. With our recent announcements of agreements with LG Energy Solution and Renault Group, we now have a diversified mix of offtakers from the cathode, battery and automotive sectors. Importantly, Umicore also shares our ambition to decarbonise the battery supply chain in Europe, by building a carbon neutral cathode plant in Poland. We look forward to a long and fruitful cooperation with Umicore as we progress our ZERO CARBON LITHIUM(TM) Project."
Mathias Miedreich, CEO of Umicore said: "In light of the accelerating transition to electromobility it is crucial to secure reliable supply of critical raw materials, that is also environmentally and socially responsible. These long-term supply agreements mark another important step in Umicore's sustainable procurement strategy and demonstrate our strong commitment to support the growth of our global customers through the creation of sustainable and regional battery materials value chains."
Press Contact: Jan Wehrhold, vulcan@dwr-eco.com, Tel: 030609819500
About Vulcan
Vulcan is aiming to become the world's first lithium producer with net zero greenhouse gas emissions. Its ZERO CARBON LITHIUM(TM) project intends to produce a battery-quality lithium hydroxide chemical product from its combined geothermal energy and lithium resource, which is Europe's largest lithium resource, in Germany. Vulcan's unique, ZERO CARBON LITHIUM(TM) project will produce both renewable geothermal energy, and lithium hydroxide, from the same deep brine source. In doing so, Vulcan will address lithium's EU market requirements by reducing the high carbon and water footprint of production, and total reliance on imports. Vulcan aims to supply the lithium-ion battery and electric vehicle market in Europe, which is the fastest
growing in the world. The Vulcan Zero Carbon Lithium(TM) project has a resource which can satisfy Europe's needs for the electric vehicle transition, from a source with net zero greenhouse gas emissions, for many years to come.
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