Vulcan Energy Resources (ASX: VUL) has secured a binding lithium hydroxide offtake agreement with French auto group Renault.
The deal will see Vulcan supply a total of 26,000 to 32,000 metric tonnes of the battery-grade product over an initial six-year term, with market-price commercial delivery set to commence in 2026.
The news follows the announcement of a term sheet signed in August, which outlined a working relationship between the parties in line with Renault’s goal to establish a European-made EV business based around its ‘ElectriCity’ production facility in Hauts-de-France.
“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”
Addressing news of the deal, Vulcan Managing Director Dr. Francis Wedin said: “The completion of this definitive offtake agreement means Vulcan’s Zero Carbon LithiumTM business will be directly enabling Renault to meet its commitment of producing carbon- free EV batteries and becoming carbon neutral, as part of its “Carbon neutrality – Green as a business” strategy. 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.”
Renault’s Gianluca De Ficchy added: “Partnership with a European lithium producer such as Vulcan is an important milestone in realizing our commitment to reach 30% emissions reduction for our supply chain by 2030. Low carbon footprint of battery chemicals is key for us, as our ambition is to offer the most sustainable vehicles in the market.”
Vulcan notes that the relationship will allow Renault to reduce CO2-equivalent emissions by between 300 to 700 kg per 50-kWh battery due to its end-to-end European operation.
The deal is subject to conditions precedent, including the successful commencement of commercial operations along with full product qualification.