PERTH: Vulcan Energy Resources Ltd. has signed a Memorandum of Understanding (MoU) with Pfalzwerke geofuture GmbH, part of the German utility Pfalzwerke Group.

 The MoU constitutes an initial collaboration period, during which Pfalzwerke geofuture will supply live brine and well data from its operational geothermal power plant, for Vulcan to use in its PFS.

A legal Joint Venture (JV) will then be established, under which Vulcan will earn up to 80% of the lithium rights at Insheim by completing a DFS for lithium extraction. The Insheim plant is currently pumping lithium-rich brine to the surface for energy generation, but not processing and extracting the lithium, before the brine is reinjected into the reservoir.

As part of this DFS, Vulcan will construct and implement a demonstration plant at Insheim. Following completion of the DFS, Pfalzwerke geofuture can then choose to co-contribute to the construction of a commercial-scale lithium plant on site, or dilute interest to a royalty on lithium production.

Managing Director, Dr. Francis Wedin commented: “Partnering with the Pfalzwerke group, a well-respected German utility, is a transformational step for the company. It brings our goal of producing aZero Carbon Lithium™ hydroxide product in Germany much closer to becoming a reality. We now have access to a lithium-rich, producing geothermal brine operation, so that feasibility studies and potentially first lithium production can be achieved in a much shorter timescale, without the immediate need to drill our own geothermal wells. We look forward to a long and mutually productive relationship with Pfalzwerke geofuture.”