Lithium developer Vulcan Energy Resources has signed a binding lithium hydroxide offtake agreement with Umicore, a leader in cathode materials production used in lithium-ion batteries for electrified transportation, as part of Vulcan’s Zero Carbon Lithium Project. (Earlier post.)
In Nysa, Poland, Umicore has built the first cathode materials plant in Europe. The plant is expected to start production around year end of 2021 and the materials that will be produced in Nysa will be sold to battery cell makers who produce the batteries for electric vehicles. Umicore has a net-zero emission Greenhouse Gas (GHG) goal by 2035, part of its “Go to Zero” initiative, and its European cathode plant will be carbon-neutral as of the start of production.
The agreement between Vulcan and Umicore is for an initial five-year term and the start of commercial delivery is set for 2025. Umicore is to purchase a minimum of 28,000 tonnes and a maximum of 42,000 tonnes of battery grade lithium hydroxide over the duration of the agreement.
Pricing will be based on market prices on a take-or-pay basis.
Umicore, a leading cathode manufacturer and the first in Europe, will be a valuable offtake partner for Vulcan, as a direct consumer of Vulcan’s lithium hydroxide products. With our recent announcements of agreements with LG Energy Solution and Renault Group, we now have a diversified mix of offtakers from the cathode, battery and automotive sectors, with further agreements expected in the near term. Importantly, Umicore also shares our ambition to decarbonise the battery supply chain in Europe, by building a carbon neutral cathode plant in Poland. We look forward to a long and fruitful cooperation with Umicore as we progress our ZERO CARBON LITHIUMTM Project.—Vulcan Managing Director Francis Wedin