Vulcan Energy Resources (ASX:VUL) has signed a binding term sheet with global automotive manufacturing company Stellantis (NYSE:STLA) for the first phase of a project aiming to decarbonise the energy mix of the Rüsselheim manufacturing site in Germany.
In the agreement, Vulcan will carry out a Prefeasibility Study (PFS) for the development of lithium-geothermal renewable energy projects in Rüsselheim as part of the first phase of the multiphase project. Both companies will seek public funding opportunities together to advance the project.
The following phase, if the first one is successful, will focus on drilling and more advanced studies and development. Stellantis will aim to source funding for 50% of the project development after the first phase.
The binding term sheet also outlines that Vulcan will still wholly own its Ried licence at the end of phase one, and it will perform a lithium mineral resource assessment.
“Vulcan’s core mission is decarbonisation through carbon neutral, zero fossil fuels lithium and renewable energy supply”
Commenting on the agreement, Vulcan Energy Resources Chief Executive Officer (CEO) and Managing Director Dr Francis Wedin says: “Vulcan’s core mission is decarbonisation through carbon neutral, zero fossil fuels lithium and renewable energy supply.
Vulcan is here to support Stellantis, our largest lithium customer and one of our major shareholders, to decarbonise Stellantis’ automotive production in Europe. This further increases our decarbonising impacts on the European electric vehicle industry, complementing the carbon avoidance from our Zero Carbon Lithium Project, whilst creating shareholder value.
We remain focused on our core geothermal-lithium developments in the centre of the Upper Rhine Valley Brine Field, to service our customers, including Stellantis. Our joint project is a complementary opportunity to expand our development pipeline to some of the outer lying areas in the Upper Rhine Valley, where we can also test for extensions to our lithium development, supported by industrial partners like Stellantis.”
Stellantis CEO Carlos Tavares says the deal is one of many actions the company has taken to drive results in alignment with its Dare Forward 2030 strategic plan.
Also commenting on the agreement, Minister President for Hesse Boris Rhein says: “I am happy about the partnership of Stellantis and Vulcan Energy. This is positive news for Hesse because it shows that in our state, climate protection and state-of-the-art industrial production through innovative ideas are perfectly compatible.”
Vulcan reports the agreement will continue until it is terminated, or the event of a no-go decision at the end of the first phase.
Vulcan Energy Resources is an ASX-listed zero carbon lithium company aiming to develop the first carbon neutral, zero fossil fuels business with the co-production of renewable geothermal energy on a mass scale.
The company says it will do this through adapting existing technology to extract lithium from geothermal brine to deliver sustainable lithium for Europe. Vulcan holds licence areas in the Upper Rhine Valley region of Germany, and in Italy.
Stellantis is a global automotive manufacturing conglomerate comprising the vehicle brands Abarth, Alfa Romeo, Chrysler, Citroën, Dodge, Fiat, Jeep, Maserati, Opel, Peugeot, Ram, and Vauxhall.
It has manufacturing sites across the globe, including the Rüsselheim facility in the Upper Rhine Valley of Germany, where the company builds Opel products.
Images: Vulcan Energy Resources Ltd
