Vulcan (ASX:VUL) share price soars 12% to record high

The lithium developer has had a good day today.

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The Vulcan Energy Resources Ltd (ASX: VUL) share price has bolted to record highs today.

Shares in the lithium developer have led the S&P/ASX 300 Index (ASX: XKO), surging more than 12% in today’s session.

Let’s take a look at what’s been propelling the Vulcan share price higher today.

What’s been fuelling the Vulcan share price?

Vulcan has not released any price-sensitive news that could explain today’s bullish price action.

There are several catalysts that could be giving the Vulcan share price a boost.

Most recently, the lithium developer announced a 5-year strategic partnership and binding lithium offtake term sheet with Renault Group.

Shares in Vulcan have also come under the spotlight after the company was recently added to the S&P/ASX 300 Index.

As a result, the company’s share price could be receiving extra attention from index funds and fund managers.

Vulcan also made headlines late last month after providing an update on its Zero Carbon Lithium Project.

Another catalyst that could be fuelling the Vulcan share price is the surging interest in the green energy sector.

Snapshot of the Vulcan share price

Vulcan is a lithium developer with its flagship Zero Carbon Lithium project located in Germany’s Upper Rhine Valley. The company has the ambitious aim of becoming the world’s first lithium producer with net-zero greenhouse gas emissions.

Its Zero Carbon Lithium project aims to produce battery-quality lithium products from its combined geothermal energy and lithium resource.

Earlier this year, the company oversaw the highly successful listing of its spin-off Kuniko Ltd (ASX: KNI).

Kuniko comprises Vulcan’s non-core Norwegian battery metal assets.

According to Vulcan, the spin-off enables the company to fully focus on the development of its core Zero Carbon Lithium Project.

Shares in Vulcan have had a stellar year thus far.

Since the start of the year, shares in the lithium developer have rocketed more than 472%.

At the time of writing, shares in Vulcan are poised to close today’s trading session around 7% higher.

Shares in Vulcan were up more than 12% earlier after hitting an intra-day and record high of $16.45.

Should you invest $1,000 in Vulcan right now?

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Motley Fool contributor Nikhil Gangaram has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. 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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