The Vulcan Energy Resources Ltd (ASX: VUL) share price has been a positive performer on Tuesday.
In morning trade, the lithium developer's shares are up 1% to $9.11.
Where next for the Vulcan share price?
Although the Vulcan share price has rocketed materially higher over the last 18 months, one broker doesn't believe it is too late to invest.
In fact, this broker appears to believe that Vulcan could be the best value lithium share on the Australian share market.
According to a note out of Germany-based Alster Research, its analysts have put a buy rating and $25.00 price target on the company's shares.
Based on the current Vulcan share price, this implies potential upside of ~175% over the next 12 months.
What did the broker say?
Alster Research highlights that Vulcan has finalised its agreement with LG Energy Solution (LGES), the world's second-largest battery maker. This will see LGES purchase between 41,000 to 50,000 tonnes of battery grade lithium chemicals over an initial term of five years from 2025.
In addition, the broker notes that Vulcan shares will be trading on the Frankfurt Stock Exchange (FSE) later this month. It expects this to be a positive catalyst.
The broker explained: "By finalizing the deal with LGES, Vulcan has now five definitive agreements with high-profile customers. We consider this as a clear sign for the high demand for battery metals from the phasing out of the combustion engine."
"At this point, Vulcan has marketed its initial production volumes for the first 5-6 years. We expect the upcoming definitive feasibility study (DFS) to create some leeway. In the near term, we expect the admission to FSE as a catalyst for the stock, as future capital increases will be accessible to a broader audience. Thus, liquidity and interest will most likely increase. We confirm our PT of AUD 25.00, equivalent to EUR 15.81, and reiterate our BUY recommendation," it concluded.