Vulcan Energy (ASX:VUL) share price leaps 10% on new lithium deal

Here’s what has got the market excited about Vulcan Energy on Monday.
The post Vulcan Energy (ASX:VUL) share price leaps 10% on new lithium deal appeared first on The Motley Fool Australia. –

The Vulcan Energy Resources Ltd (ASX: VUL) share price is soaring higher today on the back of a deal with European car manufacturer, Renault.

Renault has agreed to purchase between 26,000 and 32,000 metric tonnes of Vulcan’s battery-grade lithium chemicals over 6 years.

At the time of writing, the Vulcan share price is $11.22, 10.22% higher than its previous close.

Let’s take a closer look at today’s news from the potentially soon-to-be lithium producer.

Vulcan share price surges on EV deal

The Vulcan share price is surging higher after the company announced it has agreed to supply Renault with battery grade lithium from 2026.

Renault will be putting the material towards its goal of producing a ‘made in Europe’ electric vehicle line.

Vulcan’s zero-carbon lithium is expected to cut each of Renault’s 50-kilowatt-hour battery’s carbon emissions output by between 300 kilograms and 700 kilograms.

The pricing of Vulcan’s materials will be based on the going market rate at the time of sale. It will be on a take-or-pay basis.

However, as my Foolish colleague James reported earlier, the deal appears to involve less than it was initially promised to.

The companies previously signed a term sheet stating Renault would buy a maximum of 85,000 metric tonnes over 5 years.

Vulcan managing director Dr Francis Wedin commented on the agreement moving the company’s share price today, saying:

The completion of this definitive offtake agreement means Vulcan’s Zero Carbon Lithium business will be directly enabling Renault to meet its commitment of producing carbon-free [electric vehicle] batteries and becoming carbon neutral… the agreement is consistent with our strategy to enter into long term, stable supply agreements with companies that share our ethos on sustainability and decarbonisation ambitions.

Right now, the Vulcan share price is 307% higher than it was at the start of 2021. However, it’s still 17% lower than it was this time last month.

The post Vulcan Energy (ASX:VUL) share price leaps 10% on new lithium deal appeared first on The Motley Fool Australia.

Should you invest $1,000 in Vulcan Energy right now?

Before you consider Vulcan Energy, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Vulcan Energy wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

Vulcan (ASX:VUL) share price on watch following Renault agreement

Vulcan (ASX:VUL) share price falls despite acquisition update

Vulcan Energy (ASX:VUL) share price lifts 6% to defy wider market selloff. Here’s why

Why Afterpay, Immutep, Pushpay, and Vulcan shares are falling

Why the Vulcan (ASX:VUL) share price is rising on Wednesday

Motley Fool contributor Brooke Cooper owns shares of Vulcan Energy Resources Limited. 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.

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!