The Vulcan Energy Resources Ltd (ASX: VUL) share price rocketed 23.51% today. Shares are now in a trading halt pending a further announcement.
Vulcan’s share price has risen by 2,924% over the past 12 months, a no doubt exhilarating ride for Vulcan shareholders. A steady stream of announcements regarding the company’s European lithium project has largely been the driver for the gains.
The road so far for Vulcan Energy
Early site investigations
Vulcan entered 2020 with the largest Joint Ore Reserves Committee (JORC)-compliant lithium resource in Europe. From there, the company got underway with building an experienced team and conducting studies of the resource.
On 21 February 2020, Vulcan indicated that scoping studies confirmed the potential for a combined lithium and renewable energy production project – enabling a net-zero carbon footprint.
For the following few months, the company went on an Australian virtual roadshow. While doing so, it continued its pre-feasibility studies and raised $4.8 million to facilitate further development.
July delivered two expert chemical and mechanical engineers to the Zero Carbon Lithium team.
In early August, the company announced that it had completed direct lithium extraction (DLE) tests. The DLE results from the Upper Rhine Valley geothermal brine showed lithium recovery rates in excess of 90%.
Experienced appointments to Vulcan
On 26 August 2020, Vulcan announced that Dr Kathrina Gerber would bring her extensive lithium-ion battery expertise to its executive team as project manager.
Shortly after in September, it was announced that ex-Tesla Inc (NASDAQ: TSLA) director Jochen Rudat would join Vulcan. A former direct report to Elon Mush, Mr Rudat was integral in the launch of Tesla’s Models S, 3, X, and Roadster in the Central European region.
Mr Rudat’s role will be to explore offtake partnerships in the electric vehicle and battery sector in Europe.
More recently, Vulcan updated the market to regulatory propositions in Germany, and Europe more broadly, that are expected to be advantageous to the company. Germany’s Amended Renewable Energy Sources Act will reduce the decrease in the rate for prices on geothermal energy fed into the grid.
Additionally, the European Commission proposed a maximum carbon footprint threshold that manufacturers would need to comply with.
Today, the company is in a trading halt, pending an announcement in relation to a pre-feasibility study for its Zero Carbon Lithium project.
Vulcan shares will remain in the trading halt until the earlier of the commencement of normal trading on Wednesday 13 January 2020, or until the release of the company’s announcement.
Based on its share price at the time of the trading halt coming into effect, Vulcan commands a market capitalisation of $398.66 million.