The Vulcan Energy Resources Ltd (ASX: VUL) share price has started the week strongly.
In morning trade, the clean lithium developer’s shares are up almost 3% to $13.68.
Why is the Vulcan share price rising?
The catalyst for the rise in the Vulcan share price today has been the release of a promising announcement.
According to the release, the company’s chemical engineering team has successfully produced its first battery quality lithium hydroxide monohydrate (LHM) from piloting operations.
The release notes that the LHM was produced from Vulcan’s sorption pilot plant. This is located at a geothermal renewable energy plant in the Upper Rhine Valley in Germany, with downstream electrolysis processing offsite. This is the same setup Vulcan is planning for its commercial Zero Carbon Lithium Project.
Pleasingly, the sample exceeded traditional battery grade LHM product. This includes the best on the market battery grade specifications required from offtake customers.
Vulcan advised that further production of battery quality material will continue to ramp up to supply its offtake partners with samples.
After which, if all goes to plan, management is targeting Phase 1 commercial production for calendar year 2024.
Vulcan’s Managing Director, Dr. Francis Wedin, commented: “I would like to congratulate our chemical engineering and chemistry teams on this important milestone as we develop the Zero Carbon Lithium Project. We will continue to methodically progress, de-risk and execute on our plan to build a fully integrated renewable energy and battery-quality lithium chemicals project in Europe to service the battery and electric vehicle industry.”
“The team is working towards what is likely to be the first raw materials project with net zero greenhouse gas emissions in the world; an important statement of what can be achieved with the right scientific approach at this critical juncture of global climate change leading toward COP26,” he added.
The Vulcan share price is now up almost 400% in 2021.