The Vulcan (ASX:VUL) share price has rocketed 9% today. Here's why

The Vulcan (ASX: VUL) share price is up 9% today following the company's reveal of a pilot plant to extract lithium from the Upper Rhine Valley.

| More on:
Mining worker wearing hard hat and high vis vest holds thumbs up and smiles

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Vulcan Energy Resources Ltd (ASX: VUL) share price is surging again today following the company's reveal of a pilot plant to extract lithium from the Upper Rhine Valley.

The Vulcan share price is up 8.9% to $6.93 today in its third successive day of gains on the S&P/ASX 200 Index (ASX: XJO).

A quick take on the company

Vulcan is focused on lithium supply solutions to European electric vehicle manufacturers, a booming market at the current time.

Principally, it is engaged in exploring and developing copper-zinc projects and other mineral opportunities. The company's projects are located in the Trondelag region in Norway, namely the Lokken, Tverrfjellet, Grimsdal, Killingdal, and Storwartz projects.

Additionally, the company acquired the Vulcan Lithium Project in Germany which comprises the production of battery-grade lithium hydroxide from geothermal brines. Its operating segment includes energy metals exploration in Germany; copper and zinc mineral exploration in Norway, and administration.

This is where its current pilot plant is staged, in the Upper Rhine Valley that connects Germany and Switzerland.

Vulcan's pilot plant for lithium extraction

Vulcan has designed, built, commissioned and is now operating its pilot plant to demonstrate direct lithium extraction (DLE) from Upper Rhine Valley geothermal brine.

Vulcan is using live geothermal brine from existing wells in its piloting programme for DLE and brine chemistry test work. Vulcan is working with major suppliers, including one of the world's largest company's, DuPont, to test DLE products similar to those already used commercially in the lithium industry, on Upper Rhine Valley geothermal brine.

Given the highly publicised boom in demand for lithium – a key element in powering electric batteries – the Vulcan share price has been rocketing over recent months.

What next?

Vulcan is now focused on demonstrating pre-treatment and DLE processes, as well the durability of the process over hundreds of cycles, which will feed into its definitive feasibility study.

Vulcan will use the data from the pilot plant to inform and finalise the design of a larger demonstration plant, which will also contribute information towards the DFS.

Vulcan's technology partners and internal experts have indicated that key process operations will scale up to a commercial level with minimal risk from the demonstration scale.

What Vulcan management says

Vulcan managing director Dr Francis Wedin was bullish about the company's progress, saying:

Getting our pilot plant up and running on live geothermal brine is a significant milestone for Vulcan. This has already started producing crucial data needed for de-risking the lithium extraction process. It took less than 6 months to design, build, and commission the pilot plant.

This aggressive timeline was enabled by the project's world-class technology partners and location in Germany, where access to chemical engineering expertise is unparalleled.

This is a critical step towards our strategy of producing lithium hydroxide, using our unique Zero Carbon Lithium process, for the European battery electric vehicle market, and building a combined renewable energy and chemicals business.

Vulcan share price snapshot

The Vulcan share price has lifted 151% in 2021 so far. It's also up 2,930% over the past 12 months.

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

Before you buy Vulcan Energy Resources Limited shares, consider 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 Resources Limited wasn't one of them.

The online investing service he’s run for over 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 may be better buys...

See The 5 Stocks *Returns as of 30 April 2025

Motley Fool contributor Lucas Radbourne-Pugh 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.

More on Share Gainers

Person pretends to types on laptop drawn in sand.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a happy finish to the week for ASX shares this Friday.

Read more »

Five young people sit in a row having fun and interacting with their mobile phones.
Share Gainers

5 ASX All Ords stocks rocketing higher this week

Investors sent these five ASX All Ords stocks soaring this week. But why?

Read more »

Overjoyed man celebrating success with yes gesture after getting some good news on mobile.
Share Gainers

Why Boss Energy, Capstone, Dimerix, and Platinum shares are storming higher today

These shares are having a good finish to the week. Let's find out why.

Read more »

Fancy font saying top ten surrounded by gold leaf set against a dark background of glittering stars.
Share Gainers

Here are the top 10 ASX 200 shares today

It was the ASX's fourth day of gains for the week today.

Read more »

a man raises his fists to the air in joyous celebration while learning some exciting good news via his computer screen in an office setting.
Share Gainers

Why Cedar Woods, Healius, NextDC, and Platinum shares are charging higher today

These shares are rising on Thursday. But why are investors buying them? Let's find out.

Read more »

A bearded man holds both arms up diagonally and points with his index fingers to the sky with a thrilled look on his face over these rising Tassal share price
Share Gainers

These were the best-performing ASX 200 shares in April

These shares were in fine form in April. Let's see why they outperformed.

Read more »

Hiker man backpacker with hands up in the summer mountains with cloudy sky.
Share Gainers

Here are the top 10 ASX 200 shares today

The ASX made it three from three.

Read more »

Ecstatic woman looking at her phone outside with her fist pumped.
Share Gainers

Why Cedar Woods, Orthocell, PEXA, and St Barbara shares are storming higher today

These shares are having a good session on hump day. But why?

Read more »