Vulcan Energy (ASX:VUL) has begun lithium hydroxide production at the downstream Central Lithium Electrolysis Optimisation Plant in Frankfurt, Germany.
The first lithium hydroxide has been produced from the processing of high-purity lithium chloride that is extracted from brines at the adsorption-type direct lithium extraction optimisation plant.
This represents the first sustainable lithium hydroxide fully domestically produced in Europe, according to the $948.47 million market capitalisation company.
The plant will supply lithium hydroxide for the battery-grade qualification process with Vulcan’s automotive and battery offtake partners Stellantis (BIT:STLAM), Renault (EPA:RNO), LG (KRX:003550), and Umicore (EBR:UMI), while the phase one commercial plant is being constructed.
Phase one aims to supply 24,000 tonnes per year of lithium hydroxide, which is enough for 500,000 EVs per year.
The phase one combination of upstream adsorption-type direct lithium extraction production from deep, naturally heated brine reservoirs, combined with downstream conversion to lithium hydroxide using electricity only, which Vulcan says represents one of the “lowest cost” lithium chemical supply chains globally.
CEO Cris Moreno says integrating Vulcan’s upstream production and downstream conversion optimisation plants is pivotal for the battery supply chain resilience of Germany and Europe.
“Importantly, this combination of process allows a very low cost, highly sustainable, premium product, helping to enable European battery and EV production competitiveness,” Moreno says.
The phase one upstream and downstream plants will exclude fossil fuels in the extraction and processing of lithium, which means the process has the “lowest” carbon footprint of any other lithium production globally.
Vulcan notes the phase one process also involves the co-production of valuable renewable heat and power. The excess heat and power will be used within local communities, which further decarbonises the industries within proximity.
Vulcan Energy is focused on building the world’s first carbon neutral, integrated lithium, and renewable energy business to support decarbonising battery production.
Write to Aaliyah Rogan at Mining.com.au
Images: Vulcan Energy
