Vulcan secures agreement on help launching geothermal Lithium project
Vulcan Energy Resources signs agreement with EU-backed EIT InnoEnergy on assistance on fund raising, access to grants, relationship building, and help on securing necessary licenses for its geothermal lithium project in Germany.
Vulcan Energy Resources Ltd announced this week it has entered into a binding agreement with KIC InnoEnergy SE (EIT InnoEnergy), as part of the Business Investment Platform (BIP) of the European Commission’s European Battery Alliance (EBA) initiative.
EIT InnoEnergy is the innovation engine for sustainable energy across the European Union, including accelerating innovation and commercialisation along the entire battery value chain. EIT InnoEnergy is supported by the European Institute of Innovation and Technology (EIT), a body of the European Union. The European Commission founded the EBA in October 2017.
The EBA includes the European Commission, European Investment Bank and key EU industry stakeholders such as automakers, battery and cathode producers. EIT InnoEnergy manages the industrial development programme of the European Battery Alliance, called “EBA250”. EBA250 is a project-driven community which brings together more than 250 industrial and innovation actors, from mining to recycling, with the common objective to build a strong and competitive European battery industry. Under the agreement, EIT InnoEnergy will marshal its ecosystem and significant resources to launch Vulcan’s Zero Carbon LithiumTM Project.
Compensation for all services are entirely success-based, with no upfront cost to Vulcan. Through the agreement, InnoEnergy will use its resources and network to assist Vulcan with securing project funding, including the use of applicable EU, national or regional grant schemes, project finance and development banks and driving relationships with European lithium off-takers, aimed at the entering into of binding off-take agreements. For securing project funding, or for introducing an off-take agreement and supporting through to the completion of an agreement which includes an investment by the off-taker, EIT InnoEnergy shall be entitled to a success fee payable in equity at 30 day VWAP of the market share price at time of issue. EIT InnoEnergy will also assist with obtaining necessary licenses for its operation in Germany and services with respect to societal/environmental acceptance of the project and recruiting key personnel. Pending successful project construction start and subject to Vulcan shareholder approval if required, EIT InnoEnergy will be entitled to a share-based success fee in Vulcan for the licensing and environmental approvals assistance.
EIT InnoEnergy CEO, Diego Pavia, noted: “With its Zero Carbon LithiumTM Project, Vulcan Energy
Resources will contribute substantially to securing the lithium supply for the rapidly growing European battery industry. Even more, due to the carbon neutral production of the lithium, the project will be fully aligned with Europe’s Green Deal objectives.”
Vulcan Managing Director, Dr. Francis Wedin, commented: “This marks a major milestone for Vulcan
and our Zero Carbon LithiumTM Project. This partnership – with a reputable EU body with considerable resources – will advance our Project by helping to unlock funding, including from EU and national grant schemes. This will also support our efforts in securing offtake agreements, further investments with banks, and working with local stakeholders to assist with successful permitting. We look forward to a productive and strong relationship with EIT InnoEnergy, who are looking to join the Vulcan journey and realise our joint goal of supplying the EU battery market with Zero Carbon LithiumTM products from 2023.”
Source: Company release