Renault Group and Vulcan Energy (ASX:VUL) have announced a five-year strategic partnership within the Zero Carbon Lithium Project, securing between 6,000 and 17,000 metric tonnes per year of battery grade lithium chemicals.
The Renault Group is a top automotive player and pioneer in the European EV market, while Vulcan Energy Resources is a leading lithium developer.
The agreement is for an initial five-year term which can be extended if mutually agreed, with a start of commercial delivery set for 2026. In line with Renault Group’s ambition to offer ‘made in Europe’ cars and following the launch of Renault ElectriCity – the most competitive and efficient production unit for electric vehicles in Europe – the Group will purchase between 6,000 to 17,000 metric tonnes per year of battery grade lithium chemicals produced in Germany by Vulcan.
Gianluca De Ficchy, Alliance EVP, Purchasing and Managing Director of Alliance Purchasing Organization at Renault Group, said the European car manufacturer has set the aim to achieve carbon neutrality worldwide in 2050, continues to accelerate its EV strategy to reach the greenest mix in the European market in 2025, with over 65% of electric and electrified vehicles in the sales mix, and up to 90% battery electric vehicles mix in 2030.
He said that thanks to Vulcan, which will produce a battery quality lithium chemical product from its combined geothermal energy and lithium resource while reducing lithium’s high carbon and water footprint on production, Renault Group will be able to avoid from 300 to 700 kg of CO2 for a 50-kWh battery. The binding term sheet is conditional on the execution of a Definitive Agreement on materially similar terms by 20 November 2021.
“We are very proud to partner with a European lithium producer with a net zero greenhouse gas emissions such as Vulcan Energy,” he said.
“Our environmental and social responsibility is at the heart of the Renaulution and this must also apply to the providers we partner with if we want to create real value and offer the most sustainable vehicles in the market.”
Vulcan Managing Director, Dr Francis Wedin, said it is important that they work with companies who share its ethos on sustainability.
Renault Group is a pioneer in the EV space, with the successful introduction of truly affordable, mass market models. Perhaps most importantly, the number one pillar of Renault’s strategy is ‘Carbon neutrality – Green as a business’, with a commitment to producing carbon free batteries and becoming carbon neutral. We look forward to a long and productive relationship between Vulcan and Renault going forward,” Mr Wedin said.