Vulcan Energy Resources soared 29% on Friday, after the German-focused lithium producer released its maiden JORC ore reserve and a positive pre-feasibility study (PFS) that shows its project will have a zero-carbon footprint.
Vulcan aims to continue production of the world’s first premium, battery quality zero-carbon lithium hydroxide by harnessing renewable geothermal energy — and without using evaporation, mining or fossil fuels.
The company noted that the Zero Carbon Lithium Project’s first PFS "demonstrates strong potential to develop a cutting edge, combined renewable energy and lithium hydroxide project, in the centre of Europe, with a net-zero carbon footprint."
Sensitivity analysis shows robust project economics. The Geothermal energy part of the project is supported by favourable feed-in tariffs and recent German parliament support for geothermal.
In December, the German Parliament and Federal Council recently voted in favour of a positive Act amendment related to geothermal electricity production. Since then Vulcan's share price has gradually climbed.
The company's main focus of 2021 to undertake Definitive Feasibility Study work, permitting, lithium extraction test-work scale-up and advancing current discussions with European lithium offtakers.