The Vulcan Energy Resources Ltd (ASX: VUL) share price is pushing higher on Friday.
In morning trade, the lithium developer's shares are up 3.5% to $9.89.
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Why is the Vulcan share price charging higher?
Investors have been bidding the Vulcan share price higher today after the lithium developer released an update on its Zero Carbon Lithium Project in Germany.
According to the release, Vulcan has commenced the pre-fabrication of its Direct Lithium Extraction (DLE) Demonstration Plant offsite in Germany. This means that the commissioning of the demo plant is on track for the middle of the year.
This follows the successful operation of its DLE Pilot Plant for almost 12 months, which is reporting consistent lithium concentration and low level of impurities. Management notes that lithium recovery rates are averaging 94% to 95%, which is above the levels noted in the 2021 Pre-Feasibility Study.
Vulcan also revealed that it has commenced discussions with local stakeholders to expand operations at its 100% owned geothermal renewable energy plant in Insheim. This would see the company provide heating and energy security to local communities.
Management commentary
Vulcan's Managing Director, Dr. Francis Wedin, was pleased with the developments.
He commented: "Vulcan is combining the fields of geothermal renewable energy and lithium battery materials, to create the world's first fully integrated renewable energy and battery raw materials company. Geothermal renewable energy on a mass scale, combined with lithium extraction from the same deep geothermal source, can and will play an important part in achieving Europe and Germany's energy security and independence. Geothermal energy in Germany has the potential to account for 50% of heat supply in Germany if backed up by sufficient investment."
"Vulcan's geothermal and lithium divisions are leaders in their field and are working hard to continue to realise significant project milestones in the development of Vulcan's Zero Carbon Lithium Project. It is encouraging to see the consistent and successful track record of our lithium Pilot Plant as it comes up to one year of operation, and positive to see the Demo Plant start to take shape. At a time when Europe, particularly Germany's, reliance on Russian energy is being keenly felt, we stand committed to helping ensure Europe's and Germany's energy independence and security of supply of sustainably sourced battery metals," Dr Wedlin added.
