German-Australian lithium producer Vulcan Energy has announced a strategic partnership with Swiss technology group ABB to enhance its lithium extraction project in the Upper Rhine Valley. The partnership aims to optimize Vulcan’s production processes, particularly in the extraction of lithium from geothermal brine, creating a sustainable local source of lithium in Europe.
Vulcan’s project focuses on extracting lithium from geothermal brine, utilizing a combined geothermal and lithium resource, which is the largest in Europe. The company’s license areas are concentrated in the Upper Rhine Valley in Germany. In February 2023, Vulcan unveiled the results of a definitive feasibility study for the first phase of its lithium project, planning to produce 24,000 tons of lithium hydroxide monohydrate (LHM) annually. This compound is derived from lithium chloride in a multi-stage process.
The collaboration between Vulcan and ABB, outlined in a letter of intent, will specifically target the first phase of the lithium project. The focus will be on “optimizing the electrical and automation processes,” according to a press release. Vulcan anticipates that this partnership will lead to shorter delivery times and improved cost efficiency. The involvement of ABB at an early stage is aimed at minimizing risks and ensuring the successful implementation of phase one, the company stated.
Both Vulcan and ABB view the letter of intent as the initial step towards a long-term partnership. The current agreement is set to expire on October 31, 2024, after which both parties intend to resume negotiations and decide on a binding partnership for certain areas of project execution.
Cris Moreno, Managing Director and CEO of Vulcan, expressed optimism about the collaboration, stating, “This MoU marks the beginning of a promising long-term collaboration between Vulcan and ABB.” He highlighted the partnership’s commitment to innovation and sustainability. Staffan Sodergard, Global Business Unit Battery Manufacturing Manager at ABB Process Industries, echoed this sentiment, emphasizing ABB’s dedication to advancing innovation and technology in the battery manufacturing industry.
Vulcan Energy had previously signed a conditions agreement with chemical specialist Nobian a year ago, aiming to jointly develop and operate a central lithium plant in Germany. This partnership reflects Vulcan’s strategic approach to establishing strong alliances to drive its lithium production endeavors forward.
