The Vulcan Energy Resources Ltd (ASX: VUL) share price is edging into positive territory today. This comes after the company announced it has teamed up with one of the largest leading chlor-alkali producers in Europe.
At the time of writing, the clean lithium developer’s shares are fetching $10.20 apiece, up 0.99%. Despite today’s slight gain, its shares have fallen 12% in the past month.
Vulcan advances Zero Carbon Lithium project
The Vulcan Energy share price is climbing after the company advised it has signed a memorandum of understanding (MoU) and a term sheet with chemicals producer Nobian.
This will see the companies assess the feasibility of a joint project for the development, construction, and operation of the Central lithium plant in Frankfurt, Germany.
Nobian has extensive electrolysis operational experience which it uses in the production of essential chemicals for important industries. These include sectors ranging from construction and cleaning to pharmaceuticals and water treatment.
The collaboration will be a three-step phased project, with a joint progress decision at the end of the second phase.
The first phase will be a joint definitive feasibility study (DFS) for the Central lithium plant.
The second phase will be the operation of Vulcan’s electrolysis demonstration plant at Nobian’s existing site in Frankfurt.
Finally, the third phase will see the commercial scale-up of the Central lithium plant along with chlorine and hydrogen offtake agreements.
Vulcan is aiming to become the world’s first lithium producer with net-zero greenhouse gas emissions. Its Zero Carbon Lithium project is seeking to produce a lithium-hydroxide chemical product for the European electric vehicle battery market.
Commenting on the news which appears to be positively affecting the Vulcan Energy share price, managing director Francis Wedin said:
Our partnership with Nobian is consistent with our strategy to capitalise on the synergies that are available to us with existing chemical producers, due to our location in Germany, the largest chemical producing country in Europe.
Nobian’s experience will contribute to de-risking our planned scale-up and build-out, towards our goal of starting production from our Zero Carbon Lithium project in 2024.
Vulcan Energy share price snapshot
Over the last 12 months, the Vulcan Energy share price has jumped by more than 100%. The company’s shares reached an all-time high of $16.65 in September, before moving on a downward channel.
Based on today’s price, Vulcan commands a market capitalisation of around $1.35 billion with approximately 131.61 million shares on issue.
The post Here’s why the Vulcan Energy (ASX:VUL) share price is climbing today appeared first on The Motley Fool Australia.
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