Insights

Vulcan (ASX:VUL) share price slumps despite new partnership

The Vulcan (ASX: VUL) share price is sliding today despite the company announcing a collaboration agreement. Here’s a closer look.
The post Vulcan (ASX:VUL) share price slumps despite new partnership appeared first on The Motley Fool Australia. –

falling asx share price represented by a sad and flat battery

Vulcan Energy Resources Ltd (ASX: VUL) shares are sliding in late afternoon trade. At the time of writing, the Vulcan share price is slumping 2.7% to $7.21.

This comes despite the company announcing a collaboration with DuPont Water Solutions to advance its zero-carbon lithium extraction operations. Under the umbrella of one of the world’s largest chemical companies, DuPont Water Solutions specialises in purification and specialty-separation technologies. The company operates on a global scale delivering sustainable methods of water management.

What did Vulcan announce?

The Vulcan share price is trending lower despite the company releasing the positive announcement soon after market open this morning. 

According to its release, the partnership with DuPont is designed to assist Vulcan with achieving the world’s first zero-carbon lithium extraction.

Under the agreement, DuPont will supply direct lithium extraction (DLE) products that will test and scale-up the extraction process. This will include lithium selective sorbent, nanofiltration, reverse osmosis, ion exchange resins, ultrafiltration, and close-circuit reverse osmosis.

DuPont will conduct input and test-work during Vulcan’s zero-carbon lithium project definitive feasibility study (DFS).

The latest deal is another positive push for Vulcan’s efforts to accelerate the development of its project. The company noted that acquiring DLE products from a major supplier will minimise the technical risks associated with the extraction process.

Management commentary

Vulcan Managing Director Dr Francis Wedin touched on the partnership agreement, saying:

Collaborating with a company like DuPont is an important de-risking strategy for the DLE component of our Zero Carbon Lithium project. DuPont’s diverse set of products which can be manufactured at scale are likely to be well-suited to sustainably extract the lithium from the brine.

We look forward to a successful long-term relationship with DuPont, to implement our strategy of becoming a major supplier of our unique Zero Carbon Lithium hydroxide to the European electric vehicle battery market.

DuPont Global Vice President and General Manager HP Nanda went on to add:

We are proud to bring our expertise in water filtration and purification to Vulcan Energy’s Zero Carbon Lithium project to minimise the carbon and water footprint of lithium extraction and production — to more sustainably power mobility for years to come.

Update on the Vulcan share price

It has been an interesting few months for the Vulcan share price, particularly since the start of the year. Vulcan shares have risen to astronomical highs lately, gaining nearly 160% year to date.

While Vulcan shares are sliding today, numerous positive company updates, as well as strong investor sentiment surrounding the lithium industry, have helped push its shares higher in 2021.

Based on the current share price, Vulcan has a market capitalisation of roughly $775 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 February 15th 2021

More reading

Motley Fool contributor Aaron Teboneras 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 Vulcan (ASX:VUL) share price slumps despite new partnership 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!