S&P/ASX 300 Index (ASX: XKO) lithium stock Vulcan Energy Resources Ltd (ASX: VUL) is off to the races today.
Vulcan Energy shares closed yesterday trading for $3.69. In earlier trade, shares leapt to $3.96 each, up 7.3%. After some likely profit-taking, in later morning trade on Friday, shares are changing hands for $3.92 apiece, up 6.1%.
For some context, the ASX 300 is up 0.4% at this same time.
Here's what's grabbing investor interest.
ASX 300 lithium stock lifts off on supply contract
Investors are piling into Vulcan Energy shares after the company reported it has signed a supply contract with Canadian electrochemistry company, NORAM Electrolysis Systems (NESI).
NESI will be the exclusive electrolysis technology supplier for the Phase One Lionheart Project.
The ASX 300 lithium stock's Lionheart Project, borders Germany and France, and is reported to be the largest lithium resource in Europe. Vulcan Energy said Lionheart will be the world's first carbon-neutral, integrated lithium, and renewable energy business to decarbonise battery production.
Vulcan noted that the signing of the new contract follows the successful energisation by NESI of Vulcan's Central Lithium Electrolysis Optimisation Plant (CLEOP) in November 2024. That saw the first lithium hydroxide ever fully domestically produced in Europe.
The ASX 300 lithium stock also highlighted last week's Joint Declaration of Intent signed between Germany and Canada. That declaration is intended to increase co-operation between the two nations to secure critical mineral supply chains and accelerate the clean energy transition.
What did management say?
Commenting on the progress sending the ASX 300 lithium stock soaring today, Vulcan CEO Cris Moreno said, "The signing of the contract with NESI is an important step ahead of the construction of our Central Lithium Plant."
Moreno continued:
Our partnership with NESI to date has been key to our success at CLEOP, and its technology is a global leader in producing lithium hydroxide through electrolysis. This is yet another milestone in our aim to deliver a local, low-cost source of sustainable lithium for European EV batteries.
NESI CEO Jeremy Moulson said, "We are proud to again be partnering with Vulcan given the significance of the project and position it holds in delivering green lithium for EV batteries in Europe."
Moulson added, "We are looking forward to further contributing our technology and expertise to such an important project and further strengthening our partnership."
With today's boost factored in, shares in the ASX 300 lithium stock are up 4.5% since this time last year.
