The Vulcan Energy Resources Ltd (ASX: VUL) share price has fired up 5.6% at the time of writing to trade at $5.89.
This comes after the company released its half-year results yesterday.
Here's a rundown of what Vulcan reported.
Vulcan Energy HY20 financials
For the HY20 period ended 31 December 2020, Vulcan posted revenue that beat the previous corresponding period (PCP) by 1,182%. Vulcan's HY20 revenue totalled $372 thousand compared to $29 thousand in the PCP.
The lithium producer posted a total comprehensive loss of $6 million for HY20 vs a $1.8 million loss in HY19.
As of 31 December 2020, Vulcan held $5.8 million of cash and cash equivalents compared to $3.1 million in the PCP.
Expenses related to employee benefits and investor relations both increased as Vulcan expands its operation.
Vulcan continues to push battery production
The company commissioned a series of Direct Lithium Extraction (DLE) tests during HY20 to support its battery production efforts.
The results discovered that the geothermal brine produced from the company's Upper Rhine Valley site in Germany had a lithium recovery rate that exceeded 90% on the first pass.
In the HY report, Vulcan emphasises its intention to provide an electric vehicle (EV) battery-quality lithium to suit the European market.
The EU is the fastest-growing adapter of EVs and has strict environmental restrictions on lithium. Currently, China is the largest provider of lithium-ion batteries to the EU. Vulcan is hoping to fill that spot.
Notably, from 1 January 2026, lithium-ion batteries in the EU will require a certain class label. From 1 July 2027, carbon thresholds will be added to environmental compliance measures.
Vulcan believes it is well-positioned within its strategy to meet these needs in the future.
Vulcan Energy share price snapshot
Over the past year, the Vulcan Energy share price has exploded 2,957% higher.
At the current share price, the company's market capitalisation is $590 million. There are 107.5 million shares outstanding.
