EQS-News: Vulcan signs binding lithium offtake agreement with Glencore

Vulcan signs binding lithium offtake agreement with Glencore 

Final lithium offtake agreement for Phase One Lionheart Project financing

Vulcan Energy (Vulcan, ASX: VUL, FSE: VUL, the Company) is pleased to announce it has signed an offtake agreement with a wholly owned subsidiary of Glencore plc, one of the world’s largest natural resource companies, to provide battery-quality lithium hydroxide monohydrate (LHM) from its Phase One Lionheart Project (the Project).

The Project will have the capacity to produce 275 GWh of power, and 24,000 tonnes of LHM, enough for ca. 500,000 battery electric vehicles, per annum[1].

Key points 

• The Company has signed a binding offtake agreement to supply Glencore between 36,000 tonnes and 44,000 tonnes of LHM over the duration of an initial eight-year period
• Glencore is a multinational commodity trading and mining company headquartered in Switzerland. It produces and markets more than 60 commodities through approximately 60 assets and has offices in over 30 countries 
• Glencore joins Stellantis, Umicore and LG Energy Solution as the Company’s offtake partners for Phase One and represents the final offtake agreement required for Phase One project financing. All agreements are binding, take-or-pay and with agreed pricing mechanisms across six to ten years duration. The pricing mechanisms are a basket of fixed, floor-ceiling and index-based floating prices during the proposed debt payback period
• The agreement with Glencore offers the possibility of a European partnership for end users. There are discussions with other potential customers, including German and European automakers, who have expressed an interest in taking further volumes from Phase One
• The Company is targeting to finalise its Phase One financing package, together with project and financing agreements, in Q4 2025, before commencing construction of the commercial plants.

Vulcan Energy’s Managing Director and CEO, Cris Moreno, commented: “We welcome the start of a long-term relationship with Glencore. With this agreement - a key requirement for Phase One financing - Vulcan has now achieved a good mix of offtake partners for Phase One lithium production: an automaker, a battery maker, a cathode manufacturer, and a commodities trader, all with a strong European focus.

“The agreement also gives Vulcan the flexibility to bring in further European customers in the future, while also utilising Glencore’s expertise in this market, which is a value-add to Vulcan.”

Glencore’s Head of Lithium, Robin Francois, commented: “We are pleased to partner with Vulcan to help support the development of the German and wider European lithium supply chain.

“This new agreement with Vulcan will further expand our lithium portfolio and reinforce our position as one of the leading suppliers of battery raw materials.”

Material terms of the agreement:

The agreement contains the following material terms:

• Term: Eight years, with option for mutual extension
• Volume: Glencore is to purchase 36,000 to 44,000 tonnes of battery-quality lithium hydroxide over the duration of the agreement, representing approximately 20% of Vulcan’s current planned output over the period
• Commencement: Vulcan achieving start of commercial production during 2028, and product qualification during 2029
• Pricing: Uses a market-based pricing mechanism
• Conditions precedent: Finalising project financing, start of commercial production, qualification of product
• Other: The agreement otherwise contains terms and conditions that are standard for an agreement of this nature, including termination rights upon breach or default.

Phase One offtake outlook 

<ENDS>

For and on behalf of the Board

Daniel Tydde | Company Secretary

Further information

Judith Buchan | Communications Lead – APAC | jbuchan@v-er.eu | +61 411 597 326

Please contact Vulcan’s Legal Counsel Germany, Dr Meinhard Grodde, for matters relating to the Frankfurt Stock Exchange listing on mgrodde@v-er.eu.

About Vulcan Energy

Vulcan Energy (ASX: VUL, FSE: VUL) is building the world’s first carbon neutral, integrated lithium and renewable energy business to decarbonise battery production. Vulcan’s Lionheart Project, located in the Upper Rhine Valley Brine Field bordering Germany and France, is the largest lithium resource in Europe[3] and a tier-one lithium project globally. Harnessing natural heat to produce lithium from sub-surface brines and to power conversion to battery grade material and using its in-house industry-leading technology VULSORB®, Vulcan is building a local, low-cost source of sustainable lithium for European electric vehicle batteries. For more information, please go to https://v-er.eu/  

About Glencore

Glencore is one of the world’s largest global diversified natural resource companies and a major producer and marketer of more than 90 commodities. The Group's operations comprise around 150 mining and metallurgical sites, oil production assets and agricultural facilities. With a strong footprint in both established and emerging regions for natural resources, Glencore's industrial and marketing activities are supported by a global network of more than 90 offices located in over 50 countries. Glencore's customers are industrial consumers, such as those in the automotive, steel, power generation, oil and food processing. We also provide financing, logistics and other services to producers and consumers of commodities. Glencore's companies employ around 150,000 people, including contractors. For more information, please go to www.glencore.com

Disclaimer

Some of the statements appearing in this announcement may be in the nature of forward-looking statements. You should be aware that such statements are only predictions and are subject to inherent risks and uncertainties. Those risks and uncertainties include factors and risks specific to the industries in which Vulcan operates and proposes to operate as well as general economic conditions, prevailing exchange rates and interest rates and conditions in the financial markets, among other things. Actual events or results may differ materially from the events or results expressed or implied in any forward-looking statement. No forward-looking statement is a guarantee or representation as to future performance or any other future matters, which will be influenced by a number of factors and subject to various uncertainties and contingencies, many of which will be outside Vulcan’s control.

Vulcan does not undertake any obligation to update publicly or release any revisions to these forward-looking statements to reflect events or circumstances after today's date or to reflect the occurrence of unanticipated events. No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions or conclusions contained in this announcement. To the maximum extent permitted by law, none of Vulcan, its Directors, employees, advisors or agents, nor any other person, accepts any liability for any loss arising from the use of the information contained in this announcement. You are cautioned not to place undue reliance on any forward-looking statement. The forward-looking statements in this announcement reflect views held only as at the date of this announcement.

This announcement is not an offer, invitation or recommendation to subscribe for, or purchase securities by Vulcan. Nor does this announcement constitute investment or financial product advice (nor tax, accounting or legal advice) and is not intended to be used for the basis of making an investment decision. Investors should obtain their own advice before making any investment decision.
 

Competent Person Statement

The information in this announcement that relates to estimates of Mineral Resources and Ore Reserves is extracted from the Bridging Engineering Study Results announcement on 16 November 2023 and the Future Phase Pipeline – Mannheim Resources Growth announcement on 9 July 2025[4], both of which are available to view on Vulcan's website at http://v-er.eu. Vulcan confirms, that in respect of the estimates of Mineral Resources and Ore Reserves included in this announcement:
 

1. it is not aware of any new information or data that materially affects the information included in the original market announcement, and that all material assumptions and technical parameters underpinning the estimates in the original market announcement continue to apply and have not materially changed; and
2. the form and context in which the Competent Persons' findings are presented in this announcement have not been materially modified from the original market announcement. 

The information in this announcement that relates to production targets (and the forecast financial information derived from such production targets) is extracted from the End of Validation review contained in the Prospectus released on 18 December 2024 which is available to view on Vulcan's website at http://v-er.eu. Vulcan confirms that all material assumptions underpinning the production targets (and the forecast financial information derived from such production targets) included in this announcement continue to apply and have not materially changed.

^[1] Please refer to the risk factors contained in the 18 December 2024 (Prospectus) and Appendix 4 of the Equity Raise Presentation dated 11 December 2024 regarding the risks associated with resource exploration and development projects. Based on the Phase One production target capacity of 24ktpa from the Bridging Engineering Study (BES) Announcement 16 November 2023 and Vulcan internal estimated average EV battery size and chemistry in Europe. Please also refer to the Competent Person Statement.

^[2] These are the base Phase 1 volumes pursuant to the respective contracts.

^[3] On a lithium carbonate equivalent (LCE) basis, according to public information, as estimated and reported in accordance with the JORC Code 2012. See Appendix 4 of Vulcan's Equity Raise Presentation dated 11 December 2024 for comparison information.

^[4] The Mannheim Announcement relates solely to the lithium brine Resource estimation for the Mannheim sector.