The Vulcan Energy Resources Ltd (ASX: VUL) share price is taking a tumble, down 4.5% in early trade.
Vulcan Energy shares closed yesterday at $5.73 and are currently trading for $5.47.
This comes as the broader market is under pressure following another big sell-off in US markets overnight, with the All Ordinaries Index (ASX: XAO) down 2.2% at this same time.
Below we look at the key takeaways from the ASX lithium share's progress update for its Zero Carbon Lithium Project, located in Germany.
Image source: Getty Images
What progress was reported?
The Vulcan Energy share price is sliding despite the company announcing that the German City Council of Landau has voted to support its geothermal energy production.
Tapping geothermal energy is a critical part of the company's net carbon zero lithium production plans.
The council area covers part of Vulcan Energy's geothermal production license at Insheim, along with the Landau Süd production license where the company has a brine offtake agreement with the operator. The Insheim region forms a core part of Vulcan's Phase 1 development plans.
In its vote of support, the Landau Council said, "The lithium content in geothermally extracted thermal water in the Upper Rhine Graben offers a great opportunity to make an important contribution to combating the climate crisis."
The Vulcan Energy share price also failed to lift off this morning despite the company reporting the acquisition of new exploration licenses. The 141 square kilometres of new licenses increase Vulcan's exploration footprint in the Upper Rhine Valley Brine Field to 1,163 square kilometres.
Commenting on the developments, Vulcan Energy's managing director, Francis Wedin said:
The Council has recognised that, in addition to being a source of renewable baseload heat, deep geothermal energy can also be used to extract lithium for electric vehicle battery production with a zero-carbon, zero fossil fuel footprint of production.
This marks an important step forward along the journey of the development of our dual geothermal energy and Zero Carbon Lithium business, which is widely recognised as vital not just to energy and critical raw materials supply security in Europe, but also to meeting Germany's climate goals.
Vulcan Energy share price snapshot
The Vulcan Energy share price has struggled over the past 12 months, down 35%. That compares to a one-year loss of 13% posted by the All Ordinaries.
You're unlikely to hear long-term shareholders complaining though.
Investors who bought Vulcan Energy shares in June 2018 will be sitting on gains of 2,506%.
