Vulcan Energy Resources signs contract with Renault

Renault is to receive up to 17,000 tons of lithium per year so that the car manufacturer can power its models electrically. The start-up Vulcan Energy Resources has signed a five-year contract with the car manufacturer for this purpose.

Vulcan Energy Resources has pulled out its pen three times in recent weeks and signed contracts with LG Chem, the car manufacturer Stellantis and now with the Renault Group. This means that Vulcan Energy Resources will supply between 6,000 and 17,000 tons of lithium to the car manufacturer from 2026, and the five-year contract can be extended. 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 produce any CO2 emissions: the Karlsruhe-based start-up uses a geothermal approach to extract lithium from thermal water in underground deposits, and the heat is used to generate electricity. This means that Vulcan Energy Resources is not dependent on external energy supplies. The lithium is extracted and the water flows back into the depths. Two plants with a volume of 15,000 tons are to be built in Germany by 2024, and three more are planned from 2025, which will extract 40,000 tons of lithium.

The start-up, founded by Francis Wedin and Horst Kreuter, plans to supply commercially from 2026. Demand from car manufacturers is currently very high, Wedin told the Handelsblatt. The takeover of other projects and a possible IPO are on the table, according to Wedin.

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