Vulcan Energy supplies lithium to LG

The Karlsruhe-based start-up has acquired a well-known customer. The start-up is also planning an IPO.

The raw materials start-up Vulcan Energy has signed a supply contract with the South Korean battery manufacturer LG. The order volume amounts to 1.7 billion euros, reports the news agency Reuters. From 2024, the Karlsruhe-based company is to supply 5,000 tons of lithium in the first year and double that amount later on.

This means that the German start-up will supply a quarter of LG's lithium requirements. The contract runs for five years. LG is currently building a battery plant in Poland, where the German lithium will be processed. LG's customers also include Audi and Mercedes-Benz.

Vulcan Energy extracts the lithium required for batteries from thermal water in the depths of the Upper Rhine Graben. The hot water is pumped to the surface and converted into electricity and heat. Vulcan Energy then extracts lithium hydroxide from the thermal water. The water is then pumped back into the depths. By 2024, Vulcan Energy aims to produce 150,000 tons of lithium with two plants - and CO2-free.

In addition to LG, the Opel parent company Stellantis will apparently also become a customer of the Karlsruhe-based company. Reuters reports that both companies have signed a letter of intent. Daimler is also in talks with Vulcan Energy.

Vulcan Energy is also planning an IPO on the Frankfurt Stock Exchange. "We are sensing a great deal of interest from investors in Europe," CEO Horst Kreuter told the news agency.