Vulcan Energy inks offtake deal with Glencore
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The news: Vulcan Energy has signed an offtake agreement with a wholly owned subsidiary of commodities trader Glencore to provide battery-quality lithium hydroxide monohydrate (LHM) from its phase one Lionheart project.
The numbers: Vulcan will supply Glencore with 36,000 to 44,000 tonnes of LHM over an initial eight-year period.
Vulcan's flagship Lionheart project — located on the border of France and Germany — is expected to produce 24,000 tonnes of LHM per year once completed, enough for around 500,000 battery electric vehicles.
The context: Switzerland-based Glencore joins Stellantis, Umicore and LG Energy Solution as Vulcan's offtake partners for the Lionheart project.
Vulcan said the deal marks the final offtake agreement required for Lionheart's phase one project financing.
The company aims to finalise its phase one financing package, together with project and financing agreements, in the fourth quarter of 2025, before starting construction of the Lionheart's commercial plants. Commercial production is expected to begin in 2028.
What they said: "With this agreement — a key requirement for phase one financing — Vulcan has now achieved a good mix of offtake partners for phase one lithium production: an automaker, a battery maker, a cathode manufacturer, and a commodities trader, all with a strong European focus," said Vulcan's managing director and CEO Cris Moreno.
"The agreement also gives Vulcan the flexibility to bring in further European customers in the future, while also utilising Glencore's expertise in this market, which is a value-add to Vulcan."
The source: ASX
