Vulcan Energy signed binding lithium hydroxide offtake agreement with the Volkswagen Group.
Dr Francis Wedin, Managing Director commented:
Through this agreement, Vulcan Energy’s Zero Carbon Lithium™ business will become a key enabler of Volkswagen’s world-leading target to produce carbon neutral EVs, including all the raw materials in the battery supply chain.
“We look forward to working closely together with Volkswagen, the world’s largest automaker by revenue and the largest company in Germany, to build sustainable, local lithium supply for the German and European automotive sector.”
Thomas Schmall, Member of the Board of Management of Volkswagen Group for Technology and CEO of Volkswagen Group Components, said:
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Volkswagen is implementing its battery strategy very consistently and at a high pace.
“The Volkswagen unified cell must be at the forefront of performance, costs and sustainability right from the start. With our new partners, we are taking the next step closer to this goal. Together, we will approach key parts of the battery value chain and develop cutting-edge technologies.”
Highlights:
- Vulcan Energy Resources Ltd (Vulcan, the Company; ASX: VUL) has signed a binding lithium hydroxide offtake agreement (“Agreement”) with the Volkswagen Group, the world’s largest automaker by revenue and the largest company in Germany.
- Headquartered in Wolfsburg, Germany, the Group comprises ten brands from five European countries: Volkswagen, Volkswagen Commercial Vehicles, ŠKODA, SEAT, CUPRA, Audi, Lamborghini, Bentley, Porsche and Ducati.
- The Volkswagen Group pursues the objective of continuously avoiding or reducing greenhouse gas emissions over the entire life cycle of a vehicle, which aligns with Vulcan’s core mission to decarbonise the battery metals supply chain. In Europe alone, six gigafactories with a total production capacity of 240 GWh are to be established by Volkswagen Group by the end of the decade.
- Volkswagen Group is to purchase a minimum of 34,000 tonnes and a maximum of 42,000 tonnes of battery grade lithium hydroxide over the duration of the Agreement.
- The Agreement is for an initial five-year term and the start of commercial delivery is set for 2026. Pricing will be based on market prices on a take-or-pay basis.
- Volkswagen Group and Vulcan have also agreed to a first right of refusal to invest in additional capacity in the Zero Carbon Lithium™ Project. Conditions precedent include successful start of commercial operation and full product qualification.
Binding lithium offtake agreement with Volkswagen Group, December 8, 2021
