Vulcan Energy Resources, the developer of the lithium mine, said in a statement that it had signed a second lithium supply agreement with Renault, according to foreign media reports. Before announcing the deal, Vulcan also revealed that it had suspended part of the second phase of its German project, but said it did not expect any delay in its development schedule.
Under the latest agreement, Renault will purchase 26000 to 32000 tonnes of battery-grade lithium from Vulcan, which will last for six years. The two companies did not disclose specific financial terms. Vulcan revealed in a statement that delivery of its second agreement with Renault will begin in 2026. Lithium is the core component in the production of lithium batteries for electric vehicles.
Vulcan, one of several companies testing direct lithium extraction (DLE), signed its first agreement with Renault in August to supply Renault with 6000 to 17000 tonnes of lithium a year from 2026, which will come from Vulcan's geothermal brine deposit in Germany.
But the company said in a statement on Nov. 19 that it had encountered opposition from some local governments. The company has told German regulators that it will suspend its second phase of development while they will re-engage with stakeholders. Vulcan expects that the preliminary and definite feasibility study report will be completed by the middle of next year. JCapital, a research firm, said in a short report released last month that opponents could disrupt Vulcan's operations, but the company thought the report was inaccurate and misleading.
Vulcan has already reached lithium supply agreements with Belgian recycling group Umicore, carmaker Stellantis, and South Korean company LG Chemical.
