Vulcan Energy (ASX: VUL) has announced that it has entered into a five-year strategic partnership with Renault Group that will see the French auto manufacturer secure between 6,000 to 17,000 metric tonnes of battery-grade lithium chemicals per year.
The agreement provides support for Renault’s strategy to manufacture competitive and sustainable European-made electric vehicles, with commercial delivery set to begin in 2026.
The binding term sheet is conditional upon the execution of a definitive agreement of materially similar terms by 20th November 2021.
Renault chases green goals
This partnership will also allow Renault to reduce between 300 to 700 kg of CO2 per 50-kWh battery, as the battery-grade product is manufactured in Germany.
Renault Group has set a goal to achieve carbon neutrality worldwide by 2050, and is aiming to provide the greenest mix of automobiles in Europe by 2025, with electric vehicles accounting for over 65% of sales, and 90% by 2030.
“It is important that we work with companies who share our ethos on sustainability. Renault Group is a pioneer in the EV space”
Management comments
Renault Group EVP Gianluca De Ficchy said: “We are very proud to partner with a European lithium producer with a net zero greenhouse gas emissions such as Vulcan Energy. Our environmental and social responsibility is at the heart of the Renaulution and this must also apply to the providers we partner with if we want to create real value and offer the most sustainable vehicles in the market.”
Vulcan Managing Director Dr. Francis Wedin said: “It is important that we work with companies who share our ethos on sustainability. Renault Group is a pioneer in the EV space, with the successful introduction of truly affordable, mass market models. Perhaps most importantly, the number one pillar of Renault’s strategy is “Carbon neutrality – Green as a business”, with a commitment to producing carbon- free batteries and becoming carbon neutral. We look forward to a long and productive relationship between Vulcan and Renault going forward.”