Insights

Up 5%, here’s why the Vulcan (ASX:VUL) share price is running higher

The Vulcan Energy (ASX: VUL) share price is climbing today after the company announced another key milestone for its Zero Carbon Lithium project.
The post Up 5%, here’s why the Vulcan (ASX:VUL) share price is running higher appeared first on The Motley Fool Australia. –

The Vulcan Energy Resources Ltd (ASX: VUL) share price is shooting up today after the company provided an update for its pilot lithium extraction plant.

The Vulcan share price is up 5.59% trading at $7.55 at the time of writing.

What’s driving the Vulcan share price today?

The company announced that its pilot plant team has achieved target specification for direct lithium extraction (DLE) feed into its pilot plant. This process diverts brine flow and extracts lithium, with lithium chloride sent to its lithium refining plant while water is recycled with no toxic wastes or gases emitted.

The team was able to achieve a target recovery of greater than 90% for lithium chloride from Upper Rhine Valley brine. In addition, it demonstrated that post-treated DLE brine to be materially the same composition, within analytical error, as production brine, excluding extracted lithium and silica. This result is in line with Vulcan’s strict environmental focus.

The company said its next steps include the ramp-up of DLE pilot plant to a 24/7 operation and conversion of lithium chloride solution to lithium hydroxide. It will also provide samples to potential customers/off-takers and conduct further work on post-treatment of brine.

According to Vulcan’s Zero Carbon Lithium Corporate presentation, project milestones including piloting, offtake agreements and feasibility studies are expected to be completed by mid-2022.

By that time, the company will seek to finance the project to begin drilling and construction for Phase 1 by the third quarter of 2022. The market is clearly excited about Vulcan shares and its near-term prospects of emerging as a zero-carbon producer of critical materials.

Management commentary

Vulcan managing director Dr Francis Wedin commented on the results, saying:

The latest update from our laboratory and pilot plant lithium extraction teams in Germany shows good progress has been achieved in a very short space of time. We will aim to continue this momentum and to continue to rapidly de-risk and scale-up our lithium extraction process in the months to come, as we execute on our strategy to deliver our Zero Carbon Lithium Project into production for the European battery electric vehicle market.

Dr Wedin also responded to comments made by the International Energy Agency (IEA). He said:

With the International Energy Agency last week declaring the need for annual battery production of 6,600 GWh by 2030, implying an annual lithium chemicals requirement of 22 times current total global production, Vulcan is leading the charge to reduce large carbon emissions currently embodied in the traditional production of lithium.

The team at Vulcan is highly motivated to ensure that the global transition to renewables, energy storage and electric mobility is conducted in a sustainable, net-zero manner, and we are channeling this motivation into systematically executing on our Zero Carbon Lithium Project.

Learn 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 could be thefive best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of May 24th 2021

More reading

Here’s why the Vulcan (ASX:VUL) share price is up 32% in a month
Why the Vulcan Energy (ASX:VUL) share price is charging 6% higher

The post Up 5%, here’s why the Vulcan (ASX:VUL) share price is running higher 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!