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the Vulkan Energy Resources Ltd (ASX: VUL) The share price is moving into positive territory today. It does so after the company announced that it has partnered with one of the largest leading chlor-alkali manufacturers in Europe.
At the time of writing, the clean lithium developer’s shares are fetching $ 10.20 apiece, up 0.99%. Despite today’s slight gain, stocks are down 12% over the past month.
Vulkan advances Zero Carbon Lithium project
Vulcan Energy’s share price rises after the company announced it signed a memorandum of understanding (MoU) and term sheet with chemicals maker Nobian.
The companies are examining the feasibility of a joint project for the development, construction and operation of the Central lithium plant in Frankfurt am Main.
Nobian has extensive operating experience in the field of electrolysis, which it uses in the manufacture of essential chemicals for major industries. This includes industries that range from construction and cleaning to pharmaceuticals and water treatment.
The collaboration will be a three-stage phase project with a joint progress decision at the end of the second phase.
The first phase will be a joint definitive feasibility study (DFS) for the Central lithium plant.
The second phase will be the operation of the Vulcan electrolysis demonstration plant at the existing Nobian site in Frankfurt.
Finally, the third phase will see the commercial scale-up of the central lithium facility along with chlorine and hydrogen purchase agreements.
Vulcan aims to become the world’s first lithium producer with net zero greenhouse gas emissions. As part of its Zero Carbon Lithium project, a chemical lithium hydroxide product is to be manufactured for the European market for electric vehicle batteries.
Regarding the news that appears to be having a positive impact on Vulcan Energy’s share price, Managing Director Francis Wedin said:
Our partnership with Nobian is in line with our strategy of using the synergies that we have with existing chemical producers due to our location in Germany, the largest chemical producer in Europe.
Nobian’s experience will help minimize our planned scale-up and expansion to meet our goal of starting production from our Zero Carbon Lithium project in 2024.
Snapshot of Vulcan Energy’s share price
In the past 12 months, Vulcan Energy’s stock is up more than 100%. The company’s shares hit an all-time high of $ 16.65 in September before moving on a downward channel.
Based on today’s price, Vulcan has a market capitalization of approximately $ 1.35 billion with approximately 131.61 million shares issued.