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.
Commodity start-up Vulcan Energy has signed a supply contract with South Korean battery maker LG. The contract is worth 1.7 billion euros, the news agency reports Reuters. Starting in 2024, the Karlsruhe-based company is to supply 5,000 tons of lithium in the first year, and double that later.
The deal will see the German start-up supply a quarter of LG's lithium needs. 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 include Audi and Mercedes-Benz.
Vulcan Energy extracts the lithium needed for batteries from thermal water deep in the Upper Rhine Graben. The hot water is pumped to the surface and converted into electricity and heat, so to speak. Vulcan Energy then extracts lithium hydroxide from the thermal water. The water is then pumped back to the depths. By 2024, Vulcan Energy aims to produce 150,000 tons of lithium through two plants - and it will be CO2-free.
In addition to LG, Opel parent Stellantis is apparently also becoming 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 feeling a lot of interest from investors in Europe," CEO Horst Kreuter told the news agency.
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