Vulcan Energy announces binding lithium offtake agreement with Umicore.
Francis Wedin, Managing Director 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, with further agreements expected in the near term.”
“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™ Project.”
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Mathias Miedreich, CEO of Umicore said:
In light of the accelerating transition to electromobility it is crucial to secure a 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.”
Highlights:
- Vulcan Energy Resources Limited (Vulcan; ASX: VUL) 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, as part of Vulcan’s Zero Carbon Lithium™
Project. - 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.
Binding Lithium Offtake Agreement with Umicore, October 18, 2021
