Vulcan Energy paves way for local European lithium supply chain

New York — European lithium exploration firm Vulcan Energy Resources said Jan. 15 that a positive prefeasibility study has shown that its aim for zero carbon production is on target, with further investigations scheduled in 2021.

According to a statement to the market, "the Zero Carbon Lithium" project's first PFS demonstrates strong potential to "develop a cutting edge, combined renewable energy and lithium hydroxide project, in the centre of Europe, with net zero carbon footprint."

The results indicated a net present value in the region of Eur2.25 billion. The company market capitalization on Jan. 15 was around A$515 million ($400 million).

Vulcan aims to use geothermal power to produce zero-carbon lithium for the European auto sector.

The adoption of electric vehicles in Europe continues to gain momentum.

Sales of EV passenger cars in Norway in 2020 rose 27% year on year to 76,804 units, or a 54.3% share of overall passenger car sales, according to the latest statistics from the Norwegian Road Federation (OFV).

Local supply chains essential

Local supply chains have been thrust into the limelight amid the coronavirus pandemic.

Speaking to S&P Global Platts, Vincent Ledoux Pedailles, vice president for business development at Vulcan Energy, said "this is a fantastic opportunity for Europe to really grab hold of the local supply chain narrative."

"Investors, industry and all in-between are calling out for sustainable, ESG-linked investment opportunities, Vulcan fits that play completely."

He added that the latest study shows that a project doesn't to be high cost to be sustainable, "Vulcan will have the lowest OPEX in the world combined with a zero carbon footprint."