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Why the Vulcan Energy (ASX:VUL) share price is charging 6% higher

asx share price increase represented by golden dollar sign rocketing out from white domes of lithium
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The Vulcan Energy Resources Ltd (ASX: VUL) share price has been a strong performer on Thursday.

In afternoon trade, the Europe-based lithium developer’s shares are up 6% to $8.35.

Incredibly, this means the Vulcan Energy share price is now up over 200% since the start of the year.

Why is the Vulcan Energy share price charging higher today?

A number of lithium producers are climbing higher today despite there being no real industry news to speak of.

The likes of Galaxy Resources Limited (ASX: GXY), Orocobre Limited (ASX: ORE), and Pilbara Minerals Ltd (ASX: PLS) are all recording solid gains of their own.

So, today’s gain in the Vulcan Energy share price might have more to do with that than the release of its quarterly update this afternoon.

What did Vulcan Energy report?

Given that the company is still some way off producing lithium at the Zero Carbon Lithium Project in Germany, its quarterly report was more of a reminder of what it has achieved during the quarter. And it certainly has achieved a lot!

During the quarter the company undertook the Zero Carbon Lithium Project’s pre-feasibility study (PFS).

That PFS demonstrated strong potential to develop a cutting edge, combined renewable energy and lithium hydroxide project, in the centre of Europe, with net zero carbon footprint.

The study also estimates that the full project has a positive post-tax net present value (NPV) of 2.25 billion euros.

It also has options to phase its developments, with phase one estimated to have an NPV of 700 million euros and phase two having an NPV of 1.4 billion euros.

The company also successfully completed a $120 million placement, with strong support from ESG-focused institutions. Interestingly, the cornerstone investment was provided by Hancock Prospecting. It is one of the most successful private companies in Australian history, led by Executive Chair Gina Rinehart.

These funds will be used for project development, feasibility study costs and permitting, drill site acquisition and preparation, and strategic opportunities to accelerate project development. In respect to the latter, Vulcan advised that it is assessing options to acquire existing infrastructure in Germany to accelerate development.

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Motley Fool contributor James Mickleboro owns shares of Galaxy Resources Limited. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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