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- Proposed changes to E.U. regulations on the lithium-ion battery industry have put Vulcan Energy’s (VUL) Zero Carbon Project in the box seat
- The changes will require lithium-ion batteries to be labelled with a carbon intensity performance rating, with maximum thresholds for carbon impacts
- Manufacturers will have to demonstrate raw materials are sourced in a responsible way, and that the entire supply chain meets ethical and emissions standards
- The proposed changes are a boon for Vulcan as it seeks to get the world’s first zero carbon lithium production facility up and running in Germany
- Investors will know a lot more about the viability of Vulcan’s aspirations once the project’s pre-feasibility study drops next year
- With the proposed regulatory changes, Vulcan will potentially carry more momentum into finance and offtake discussions as it moves toward production
- Vulcan Energy is up 13.19 per cent, trading for $2.66
Proposed changes to E.U. regulations on the lithium-ion battery industry have put Vulcan Energy’s (VUL) Zero Carbon project in the box seat.
Carbon footprint thresholds
The changes will require lithium-ion batteries to be labelled with a carbon intensity performance rating, similar to the energy star ratings found on whitegoods and water heaters in Australia.
The labelling system will be mandatory from the start of 2026, with maximum carbon footprint thresholds to be introduced in mid-2027.
Any battery that doesn’t meet the thresholds will be banned. Manufacturers will have to demonstrate raw materials are sourced in a responsible way, and that the entire supply chain meets ethical and emissions standards.
A “digital passport” system will be created to track all materials used in battery production, with mandatory third-party checks to ensure a product’s green credentials.
The proposed changes are a boon for Vulcan as it seeks to get the world’s first zero carbon lithium production facility up and running in Germany.
The company will use a novel technique of brine extraction which takes advantage of geothermal energy to power the process — creating net zero carbon lithium hydroxide and pumping renewable energy into the grid in the process.
Vulcan Managing Director Dr. Francis Wedin says the company’s strategy has put it ahead of the curve as the world moves towards a net zero carbon future.
“Decarbonisation, responsibly sourced lithium and renewable energy are the foundation of Vulcan,” Dr Wedin began.
“Our early adoption of this strategy gained E.U. support and puts us at the forefront of the lithium sector where companies will have to adapt to the rapidly evolving global aims of decarbonisation in the production process and responsibly sourced materials,” he said.
“With our pre-feasibility study due shortly we go into 2021 knowing that our project, process and product, to produce battery quality lithium hydroxide for electric vehicles in Europe for the European market with net zero carbon footprint, will be strongly supported by E.U. regulations,” he concluded.
Outlook
Investors will know a lot more about Vulcan’s zero carbon lithium aspirations once the pre-feasibility study drops next year.
With Europe’s largest JORC-compliant lithium resource and a reliable, renewable power source underpinning zero carbon production, Vulcan’s product is almost guaranteed to be at the vanguard of global green lithium supliers.
Vulcan has already enjoyed strong support from the E.U. to develop the zero carbon lithium project.
With the proposed regulatory changes, Vulcan will potentially carry more momentum into finance and offtake discussions as it moves toward production.
Vulcan Energy is up 13.19 per cent, trading for $2.66 at 12:21 pm AEDT.
