The Vulcan Energy Resources Ltd (ASX: VUL) share price is moving higher, up 2% in morning trade.
Below we take a look at the latest partnership announcement from the ASX energy share.
What partnership deal did Vulcan announce?
The Vulcan Energy share price is lifting after emerging from Friday’s trading halt and announcing it had entered into a 5-year strategic partnership with Renault Group within the Zero Carbon Lithium Project.
The agreement will see Renault purchase between 6,000–17,000 tonnes per year of battery grade lithium chemicals produced in Germany by Vulcan. It will enable Renault to avoid some 300–700 kilograms of CO2 emissions for each 50-kWh battery it produces.
Start of commercial delivery is slated for 2026. The initial 5-year agreement can be extended if both parties agree.
Commenting on the partnership, Vulcan’s managing director, Francis Wedin said:
It is important that we work with companies who share our ethos on sustainability. Renault Group is a pioneer in the EV space, with the successful introduction of truly affordable, mass market models. Perhaps most importantly, the number one pillar of Renault’s strategy is “Carbon neutrality – Green as a business”, with a commitment to producing carbon-free batteries and becoming carbon neutral.
Gianluca De Ficchy, managing director of Alliance Purchasing Organization at Renault Group added, “We are very proud to partner with a European lithium producer with a net zero greenhouse gas emissions such as Vulcan Energy.”
De Ficchy said it’s critical that the companies Renault partners with share its environmental and social responsibility goals, “if we want to create real value and offer the most sustainable vehicles in the market.”
According to the release, the binding term sheet remains conditional on the execution of a “materially similar” Definitive Agreement by 20 November.
Vulcan Energy share price snapshot
The Vulcan Energy share price has been red hot over the past 12 months, gaining 2,161%. For some comparison, the All Ordinaries Index (ASX: XAO) has gained 27% over that same time.
Year-to-date the Vulcan Energy share price has continued to outperform, up 262% in 2021.