PERTH (miningweekly.com) – Lithium developer Vulcan Energy has inked a binding lithium hydroxide offtake agreement with vehicle manufacturer Renault Group.
The binding offtake agreement follows an August term sheet between the two companies, and covers an initial six-year period from the start of commercial production at Vulcan’s Zero Carbon lithium project, in Germany, which is set for 2026.
Under the offtake agreement, Renault would purchase between 26 000 and 32 000 t of battery-grade lithium chemicals over the duration of the agreement.
“The completion of this definitive offtake agreement means Vulcan’s Zero Carbon Lithium business will be directly enabling Renault to meet its commitment of producing carbon-free electric vehicle (EV) batteries and becoming carbon neutral, as part of its “Carbon neutrality - Green as a business” strategy,” said Vulcan MD Dr Francis Wedin.
“For Vulcan, the agreement is consistent with our strategy to enter into long-term, stable supply agreements with companies that share our ethos on sustainability and decarbonisation ambitions. We look forward to a long and productive relationship between Vulcan and Renault Group going forward.”
Consistent with Vulcan’s strategy to decarbonise the battery materials sector, the partnership with Vulcan will allow Renault Group to avoid between 300 kg and 700 kg of carbon dioxide equivalent emitted for a 50 kWh battery.