Vulcan Energy Begins Lithium Hydroxide Production at German Plant
Vulcan Energy has commenced production of lithium hydroxide at its Central Lithium Electrolysis Optimisation Plant in Frankfurt, Germany. The first lithium hydroxide has been successfully produced from high-purity lithium chloride, which is extracted from brines at Vulcan's direct lithium extraction optimisation plant.
This milestone marks the first sustainable production of lithium hydroxide fully domestically produced in Europe, according to Vulcan Energy, which has a market capitalisation of $948.47 million. The Frankfurt plant will supply lithium hydroxide for the battery-grade qualification process with Vulcan’s automotive and battery partners, including Stellantis, Renault, LG, and Umicore, while construction of the phase one commercial plant is underway.
Phase one aims to supply 24,000 tonnes of lithium hydroxide annually, sufficient for powering approximately 500,000 electric vehicles per year. This phase combines upstream production through adsorption-type direct lithium extraction from deep, naturally heated brine reservoirs with downstream conversion to lithium hydroxide using electricity, creating what Vulcan describes as one of the "lowest cost" lithium supply chains in the world.
CEO Cris Moreno emphasized the importance of integrating upstream production with downstream conversion for enhancing battery supply chain resilience across Germany and Europe. Moreno noted that Vulcan's combination of processes allows for a highly sustainable and cost-efficient product, aiding competitiveness in European battery and electric vehicle production.
The upstream and downstream operations in phase one will exclude fossil fuels, resulting in the lowest carbon footprint for lithium production globally, according to Vulcan Energy. The project also features the co-production of valuable renewable heat and power, with excess energy being used to benefit local communities and help decarbonize nearby industries.
