Lithium producer Vulcan Energy brings on ABB as production partner
Vulcan aims to extract lithium from geothermal brine, creating a local source of sustainable lithium in Europe. Vulcan’s combined geothermal and lithium resource is the largest in Europe, with license areas concentrated in the Upper Rhine Valley in Germany. In February 2023, Vulcan announced the results of a definitive feasibility study for the first phase of its lithium project, according to which Vulcan initially intends to produce 24,000 tons of lithium hydroxide monohydrate (LHM) per year. This is produced from lithium chloride in a multi-stage process.
The cooperation between Vulcan and ABB, which is set out in a letter of intent, is to relate to precisely this first phase of the lithium project. The intention is to work together on “optimizing the electrical and automation processes”, according to an accompanying press release. Vulcan expects this to result in shorter delivery times and improved cost efficiency, among other things. “Vulcan’s decision to involve ABB as a partner at an early stage is intended to support both companies in creating a good basis for cooperation, minimizing risks and implementing phase one in accordance with the project plan,” said the lithium producer, which extracted its first lithium chloride in a newly constructed plant called LEOP (“Lithium Extraction Optimization Plant”) in Landau earlier this month.
Both sides describe the letter of intent as the first step towards future cooperation. The aim is to establish a long-term partnership at an operational level that will benefit both companies. The newly signed letter of intent will initially run until October 31, 2024, after which Vulcan and ABB intend to resume negotiations and make a decision on a binding partnership in certain areas of project execution.
Cris Moreno, Managing Director and CEO of Vulcan, already speaks of the cooperation as an important pillar: “This MoU marks the beginning of a promising long-term collaboration between Vulcan and ABB. We are delighted to be partnering with ABB to deliver world-leading solutions in electrical and automation for Phase One of our integrated renewable energy and ZERO CARBON LITHIUM Project and beyond, reflecting our joint commitment to innovation and sustainability.”
“ABB’s MoU with Vulcan Energy Resources marks a significant partnership to jointly provide battery manufacturing expertise to the European market,” agrees Staffan Sodergard, Global Business Unit Battery Manufacturing Manager, ABB Process Industries. “This collaboration underscores ABB’s commitment towards advancing innovation and technology to the battery manufacturing industry.”
A year ago, Vulcan Energy had already signed a so-called conditions agreement with chemical specialist Nobian for a planned strategic partnership aimed at jointly developing and operating a central lithium plant in Germany.
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