Gina Rinehart-backed Vulcan Energy (ASX:VUL) inked a deal with auto giant Volkswagen to supply at least 34,000 tonnes of battery grade lithium for five years.
Volkswagen Group and Vulcan have also agreed to a first right of refusal to invest in additional capacity in the Zero Carbon Lithium™ Project. Underpinning the handshake included a successful kick off on commercial operation and full product qualification
They key ingredient in batteries for electric vehicles, lithium is slated for delivery for 2026 with pricing to be based on market prices or on a take-or-pay basis.
The move comes as the Volkswagen Group focuses on reducing greenhouse gas emissions over the life span of its vehicles.
Shares in Vulcan Energy (ASX:VUL) is skyrocketing by 18.3 per cent at $11.50.