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Renault Group signs lithium offtake agreement with Vulcan Energy; Zero Carbon Lithium

Renault Group and Vulcan Energy Resources, a lithium developer targeting carbon-neutral lithium production (earlier post), have signed a lithium offtake term sheet. This agreement is for an initial five-year term which can be extended if mutually agreed, with a start of commercial delivery set for 2026. Vulcan announced a similar agreement with LG Energy Solutions two weeks ago.

In line with Renault Group’s ambition to offer “made-in-Europe” cars, and following the launch of the Renault ElectriCity production unit for electric vehicles in Europe, the Group will purchase between 6,000 to 17,000 metric tonnes per year of battery-grade lithium chemicals produced in Germany by Vulcan.

Renault Group, which has set the aim to achieve carbon neutrality worldwide in 2050, continues to accelerate its EV strategy to reach the greenest mix in the European market in 2025, with more than 65% of electric and electrified vehicles in the sales mix, and up to 90% battery electric vehicles mix in 2030.

Through Vulcan, which will produce a battery-quality lithium chemical product from its combined geothermal energy and lithium resource while reducing lithium’s high carbon and water footprint on production, Renault Group will be able to avoid from 300 to 700 kg of CO2 for a 50 kWh battery.


Vulcan’s Zero Carbon Lithium process flow sheet.

The binding term sheet is conditional on the execution of a Definitive Agreement on materially similar terms by 20 November 2021.

Vulcan is aiming to become the first lithium producer with net-zero greenhouse gas emissions. Its Zero Carbon Lithium Project intends to produce a battery-quality lithium hydroxide chemical product from its combined geothermal energy and lithium resource—which is Europe’s largest lithium resource—in the Upper Rhine Valley in Germany.

Vulcan aims to produce both renewable geothermal energy and lithium hydroxide, from the same deep brine source. In doing so, Vulcan intends to address lithium’s EU market requirements by reducing the high carbon and water footprint of production, and total reliance on imports.


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