Vulcan Energy Resources signs contract with Renault

Up to 17,000 tonnes of lithium are to be supplied to Renault each year to enable the carmaker to power its models electrically. The start-up Vulcan Energy Resources has signed a five-year contract with the carmaker for this purpose.

Vulcan Energy Resources has picked up the pen three times in recent weeks, signing contracts with LG Chem, carmaker Stellantis and now Renault Group. This means Vulcan Energy Resources will supply between 6,000 and 17,000 tonnes of lithium to the carmaker from 2026, and the five-year contract is renewable. The French company wants 90 percent of its models to be fully electric by 2030 and is now securing material for its batteries.

Vulcan Energy Resources has developed a process for extracting lithium that does not involve CO2 emissions: using a geothermal approach, the Karlsruhe-based start-up extracts lithium from thermal water in underground deposits, and the heat is used to generate electricity. In this way, Vulcan Energy Resources is not dependent on external energy supplies. The lithium is extracted, the water flows back into the depths. By 2024, two plants in Germany with a volume of 15,000 tons are to be built for this purpose, and from 2025, three more are planned to extract 40,000 tons of lithium.

The start-up, founded by Francis Wedin and Horst Kreuter, aims to deliver commercially from 2026. Currently, demand from automakers is very high, Wedin told the Handelsblatt. The acquisition of other projects and a possible IPO are on the cards, Wedin said.

"It is important that we work with companies that share our ethos of sustainability. Renault Group is a pioneer in the field of electric vehicles with the successful launch of truly affordable mass market models," says CEO Wedin on the signing of the contract with Renault.