Vulcan Energy Resources Ltd signed a binding agreement with Enel Green Power, the renewable energy unit of Italian electricity manufacturer Enel SpA, on Friday to jointly develop Vulcan’s Cesano license near Rome.
Under the agreement, 50% of the area under Vulcan’s Cesano permit, which has the potential for development of lithium battery chemicals, will be owned by Enel Green Power (EGP), Vulcan Energy said in a statement.
Both the companies will assess the potential of Cesano license in a step-wise approach, starting with a scoping study and explore other geothermal lithium projects in the country, the energy metals explorer added.
Separately, Vulcan said it had received a positive result for its preliminary environmental impact assessment application to drill six wells for geothermal energy and lithium at its flagship lithium-extraction project in the Upper Rhine Valley, Germany.
Lithium is a core component for making lithium-ion batteries used in electric vehicles. It has gained traction rapidly as the world moves towards cleaner forms of energy.
Vulcan, which is listed both in Sydney and Frankfurt, currently has lithium supply deals automakers Volkswagen, Stellantis and Renault SA, among others.
(By Himanshi Akhand; Editing by Rashmi Aich)
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