The Vulcan (ASX:VUL) share price just hit an all-time high

The Vulcan Energy Resources Ltd (ASX: VUL) share price has hit a new all-time high today. Let’s talk about what this company has been up to.
The post The Vulcan (ASX:VUL) share price just hit an all-time high appeared first on The Motley Fool Australia. –

miniature rocket breaking out of golden egg representing rocketing share price

The Vulcan Energy Resources Ltd (ASX: VUL) share price has spent the last 12 months climbing its way from 15 cents per share, to today’s intraday all-time high of $3.41 – easily outpacing the S&P/ASX 200 Index (ASX: XJO)

Although there is no new news out from the company today, we can take a look at the most recent update and recap the recent developments.

A closer look at Vulcan

Since being acquired in 2019, Vulcan has been aiming to be the world’s first ‘Zero Carbon Lithium’ producer. More specifically, the company hopes to produce battery-grade lithium hydroxide with a net-zero carbon footprint.

Vulcan expects to leverage its geothermal and lithium project in the Upper Rhine Valley of Germany. By using the same brine to produce both lithium and geothermal energy simultaneously, the company believes it will address the current issues with lithium in Europe.

If achieved, Vulcan aims to then supply the lithium-ion battery and electric vehicle market in Europe – the fastest growing in the world.

In December 2019, Vulcan completed an Inferred Mineral Resource Estimation of its lithium resource. The results suggest that it is the largest lithium resource in Europe, and significant in size on a global level.

What’s been energising the Vulcan share price?

The Vulcan share price has been trending upwards since 21 December last year. On this day, Vulcan updated the market to a recent German legislative change. The legislation is in favour of an Act amendment to geothermal electricity production. This amendment will decrease the reduction rate of feed-in tariffs for geothermal electricity in Germany. Rather than the existing decline of 5% per year, the amended rate will be 0.5% per year.

This would make geothermal energy offsetting more economical for Vulcan. Additionally, once a geothermal project starts operating, the feed-in tariff at the time is locked in for 20 years.

These legislative changes are off the back of the European Commission proposing mandatory requirements on carbon footprints from lithium miners. The requirements would result in all lithium-ion batteries in Europe to include a carbon intensity performance class label from 1 January 2026. If the producer does not meet the carbon footprint threshold they will be barred from operating.

The Vulcan share price closed the day up 10.53%, at $3.36 per share. The company’s market capitalisation now sits at $239.96 million.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of June 30th

More reading

Motley Fool contributor Mitchell Lawler 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.

The post The Vulcan (ASX:VUL) share price just hit an all-time high appeared first on The Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!