The Vulcan Energy Resources Ltd (ASX: VUL) share price will be one to watch in early morning trade. This comes after the clean lithium provider announced an update to its Zero Carbon Lithium Project.
At close of trade on Friday last week, Vulcan shares finished the day at $7.99 – up 2.17%. The All Ordinaries Index (ASX: XAO) closed the trading day at 7,587 points – up 0.6%.
Let's take a closer look at what the company released in early morning market news.
What did Vulcan announce?
Vulcan shares could be on the move following the appointment of two key companies to help advanced its lithium project in Germany.
In today's statement, Vulcan advised it has engaged key consultants to help execute its Definitive Feasibility Study (DFS).
Vulcan is aiming to become the world's first lithium producer with net-zero greenhouse gas emissions. Its Zero Carbon Lithium Project is seeking to produce a lithium-hydroxide chemical product for the European electric vehicle battery market.
The company has appointed international lithium plant engineering specialists Hatch Ltd and international energy engineering specialists GLJ Ltd.
Hatch will take responsibility for the lithium chemicals part of the DFS. This includes the engineering and execution planning for the Direct Lithium Extraction (DLE) plants and Central Lithium Plant (CLP).
In addition, GLJ is tasked with compiling the overall report, economic modelling and sign-off on certain aspects of the DFS. This relates to geological engineering and geothermal renewable energy.
Vulcan will also use in-house teams from its recent acquisitions to execute the DFS. The company's lithium chemistry and chemical engineering team will focus on laboratory and pilot plant work.
Meanwhile, Gec-co and GeoT will work towards geothermal engineering and development for above-surface and below-surface, respectively.
Vulcan is aiming to complete the DFS within the next 12 months.
Vulcan managing director Dr Francis Wedin:
Following a few months of successful pilot operation, as planned we are now commencing our Definitive Feasibility Study towards our world-first, combined renewable energy and lithium battery chemicals project in Germany.
Hatch Ltd and GLJ Ltd, both leaders in their fields, will be liaising with our expert in-house teams to execute on the DFS. We are looking forward to an exciting and challenging 12 months ahead, as we execute on our unique Zero Carbon Lithium Project.
Vulcan share price summary
The Vulcan share price has jumped by more than 1,300% over the past 12 months. The company's shares reached an all-time high of $14.20 in January this year, before pulling back.
On valuation grounds, Vulcan has a market capitalisation of around $866 million, with approximately 108 million shares outstanding.
