The Vulcan Energy Resources Ltd (ASX: VUL) share price is edging higher on Wednesday morning.
At the time of writing, the lithium developer's shares are up slightly to $7.51.
At one stage, the Vulcan share price was up as much as 4.5% to $7.85.
Why is the Vulcan share price rising?
Investors were buying the company's shares this morning after the company announced plans to expand its operations.
According to the release, Vulcan is expanding its activities to the French side of the Upper Rhine Valley Brine Field (URVBF). This accounts for roughly one third of the Upper Rhine Graben, containing both geothermal energy and lithium-rich brine.
Vulcan notes that it previously collected a bulk (10,000 litres) brine sample from the French side of the border and conducted test work on it. The sample returned a high grade of 214 mg/L Li and low impurities.
In addition, historical data and sampling coming from existing geothermal operations in the region indicate that the brine composition in the Alsace region is materially the same as the brine composition across the border at Vulcan's operations in Germany. Management believes that this means Vulcan's sustainable lithium production process is applicable across the whole field.
Management also highlights that Vulcan already has a strong connection to the French market with France's largest automakers Renault and Peugeot-Citroen. These brands are owned by Stellantis, which is Vulcan's second largest shareholder.
Vulcan's chief commercial officer, Vincent Ledoux-Pedailles, commented:
Vulcan is aiming to increase the future supply of our sustainable lithium product in response to significant customer demand, as we leverage our extensive experience in lithium extraction from heated brines to have a materially decarbonising effect on global electric vehicle supply chains.
An extension of our core operating area, the Upper Rhine Valley Brine Field, expanding into France is a natural next step for Vulcan as we can apply the same expertise and technology to extract lithium sustainably. We look forward to supporting our French customers and working with local communities and companies to decarbonise their energy mix.
