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Name of the Project
Zero Carbon Lithium project.
Location
Frankfurt, Germany.
Project Owner/s
Vulcan Energy Resources.
Project Description
Vulcan aims to be the world’s first integrated lithium chemicals and renewable-energy producer with net-zero, greenhouse-gas emissions.
Phase 1 comprises the Lionheart zone and the neighbouring Taro zones. The definitive feasibility study (DFS) envisages an operation producing 24 000 t/y lithium hydroxide monohydrate, targeting more than 300 GWh/y of renewable power, and more than 250 GWh/y of renewable heat production.
A Phase 2 DFS is to follow, targeting the production of an additional, modular 24 000 t/y, consistent with the project’s January 2021 prefeasibility study and updated for new engineering data from the Phase 1 DFS.
Potential Job Creation
Not stated.
Net Present Value/Internal Rate of Return
The DFS estimates a pretax net present value, at an 8% discount rate, of €3.9-billion and an internal rate of return of 34%, with a payback of 3.5 years.
Capital Expenditure
Capital expenditure is estimated at €1.5-billion.
Planned Start/End Date
Production is expected to start at the end of 2025.
Latest Developments
Vulcan Energy has launched a A$109-million single-tranche share placement to sophisticated and professional investors to progress its renewable-energy and lithium project.
The company will place 21.4-million shares at a fixed price of A$5.10 each, representing a 17.2% discount to Vulcan’s last trading price on the ASX, and a 14.1% discount to the company’s ten-day volume weighted average share price.
The new shares will be issued under the company’s existing placement capacity and will not require shareholder approval.
The proceeds from the placement, along with existing cash, will be used to progress its Zero Carbon lithium project, including ordering long-lead capital items for the Phase 1 lithium plant and for the Phase 1 renewable-energy plant.
Funds will also be used on other Phase 1 project executions such as drilling new production wells and acquiring land for a lithium extraction plant and brine production sites, as well as funding the engineering costs associated with the Phase 1 execution and Vulcan’s in-house lithium extraction sorbent co-investment for local commercial production.
Funds will also be used for the three-dimensional seismic acquisition for the Phase 2 development.
Key Contracts, Suppliers and Consultants
None stated.
Contact Details for Project Information
Vulcan Energy Resources, tel +61 8 6189 8767 or email info@v-er.eu.