The Vulcan Energy Resources Ltd (ASX: VUL) share price has started 2022 in fine form.
In morning trade, the lithium developer's shares are up 6% to $11.05.
Why is the Vulcan share price charging higher?
Investors have been bidding the Vulcan share price higher today after it revealed that it has been granted five new exploration licenses for geothermal energy and lithium in the Upper Rhine Valley, Germany.
According to the release, the licenses cover an area 325km squared which is considered by Vulcan to be prospective for deep geothermal and lithium brine. It increases the company's granted license area by nearly 50% to over 1,000km squared.
Vulcan's Managing Director, Dr. Francis Wedin, commented: "Our core mission is to build shareholder value by having a materially decarbonising effect on the lithium supply chain for battery electric vehicles, and on energy production in Europe. To do this, we aim to further grow our Zero Carbon Lithium Project."
Dr Wedin also spoke about the future and what shareholders should be expecting from the company in the next five to six years.
He said: "Following the signing of binding lithium offtake agreements with Volkswagen Group, Stellantis, Renault Group and Umicore, as well as a binding term sheet with LG Energy Solution, Vulcan's current plans for lithium production are now fully booked for the first five to six years of planned operation, a unique achievement which is testament to our team and the uncompromising environmental credentials of the Zero Carbon Lithium Project."
"We have increasing demand from our customers for further supply. These new exploration licenses give us significant potential to further scale up our project as the market continues to grow, whilst also meeting the increasing demand for renewable heat and power," Dr Wedin concluded.
