This clean lithium company’s shares are falling on Wednesday…
The post Vulcan (ASX:VUL) share price falls despite positive lithium plant update appeared first on The Motley Fool Australia. –
The Vulcan Energy Resources Ltd (ASX: VUL) share price is falling on Wednesday morning.
At the time of writing, the clean lithium developer’s shares are down 1% to $12.81.
Why is the Vulcan share price falling?
The Vulcan share price is trading lower today after a broad market selloff offset the release of a positive announcement.
That announcement reveals that Vulcan has secured a site for the planned Central Lithium Plant (CLP) of its Zero Carbon Lithium Project.
According to the release, the company has signed an agreement with chemical park management company, Infraserv, for a site located in the Industriepark Hochst just outside of Frankfurt in Germany.
The release notes that Hochst is one of the largest chemical sites in Europe and is home to 90 companies. These include Celanese, Clariant, Nobian, and Sanofi.
What is the CLP?
Vulcan’s CLP will be used as a processing hub. From this site the company will process lithium chloride from multiple combined geothermal and lithium sorption plants into lithium hydroxide monohydrate.
This lithium hydroxide monohydrate will then be transported to Vulcan’s European customers in the battery and electric vehicle industry. It believes this will dramatically lower the transport footprint of the current lithium supply chain.
The company will now work on obtaining the necessary permits in the chemical park to make the construction of the CLP a reality.
Vulcan’s Managing Director, Dr. Francis Wedin, commented: “Securing a site for the Central Lithium Plant is an important step toward the execution of the Zero Carbon Lithium Project. Importantly, the location allows for low carbon transport options from our nearby project areas, as well as renewable energy to power the proposed plant, which underpins our commitment to minimising our carbon footprint in each step of our process. This follows on from the first production of battery quality lithium hydroxide from our pilot plant, announced on 27th September.”
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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.