Vulcan Energy Resources

DR FRANCIS WEDIN

MANAGING DIRECTOR

(ASX:VUL)

◾ Company Name: Vulcan Energy Resources ◾ Company ASX code: VUL ◾ Key commodities: Lithium and geothermal ◾ Key Personnel: Dr Francis Wedin, Managing Director | Gavin Rezos, Non-Executive Chairman | Dr Horst Kreuter, Chief Executive Officer Germany ◾ Locations: Upper Rhine Valley, Germany and Cesano, Italy ◾ Market Cap as of 15/07/22: $837.07M ◾Share price range over 12 months as of 15/07/22: $15.90 - $5.00 ◾ Company Website: v-er.eu

COMPANY PROFILE

Vulcan Energy Resources is seeking to become an integrated renewable energy and lithium battery chemicals producer for electric vehicles, with zero or even negative net carbon emissions along with low levels of water and reagent consumption, low land use and minimal waste generation, and zero fossil fuel consumption.

Vulcan is already commercially producing renewable energy in Germany, and is aiming to be the largest lithium supplier into the European electric vehicle market, from its globally unique Zero Carbon Lithium™ Project.. THe company’s Zero Carbon Lithium™ project is unique because of the renewable heat embodied in its brines thanks to their deep location in the Upper Rhine Geothermal-Lithium Brine Field.

This heat is used to power the lithium extraction – making it carbon neutral – and generate clean, renewable geothermal energy to help fix Germany’s energy crisis.

While Vulcan’s approach is unique, the lithium extraction and geothermal energy processes are mature technologies or have commercial analogues, essentially de-risking a large portion of the project.

Along with the definition of Europe’s largest lithium resource, the construction of a pilot plant which has been operating for over a year, and the acquisition of a geothermal power plant which is generating revenue for the Company, Vulcan’s progress since listing four years ago has not gone unnoticed.

The Company’s list of agreements reads like a who’s who and includes major companies such as chemicals manufacturer Nobian, and MVV Energie AG (MVV), the largest municipal energy supplier in Germany.

Nobian is working with the Company on the development, construction and operation of the Central Lithium Plant, which is a key plank of its commercial plans, while the agreement with MVV includes the supply of renewable heat to 25,000-35,000 households in Mannheim, outside of Frankfurt, an immediate step taken to achieve energy security as the country looks to reduce its reliance on Russia.

Vulcan also reached binding lithium hydroxide offtake agreements with automakers Volkswagen, Stellantis and Renault Group, battery maker LG Energy Solutions and cathode producer Umicore.

However, the deal that really highlights the potential of the Company’s Zero Carbon Lithium™ Project is the $76m equity investment into Vulcan by Stellantis, a global top five automaker that encompasses well-known brands such as Opel, Peugeot, Citroen, Fiat and Chrysler.

Managing Director Francis Wedin said that the Stellantis investment was a major tick of confidence by a global auto manufacturer, which has also extended its binding offtake agreement to 2035.

“What’s been made very clear to us is that the net zero-carbon footprint of our lithium product is extremely important to them,” he added.

“Making sure this project is successful from a sustainability perspective is extremely important to Stellantis – they want to be closer aligned so they can see how we are developing this project and to make sure that it is doing what it says it does, and work together with us every step of the way.”

More recently, Vulcan reached an agreement with Italy’s largest geothermal energy producer Enel Green Power (EGP) to develop its Cesano license in Italy through a joint scoping study.

Vulcan is well-placed to thrive in Europe, as it aims to produce lithium chemicals from Europe, for Europe, for the battery automotive industry, whilst building out renewable heating production on a mass-scale to help fix the European energy crisis.

KEY INVESTMENT HIGHLIGHTS

JULY 8, 2022: Binding collaboration agreement with Italy’s largest geothermal energy producer Enel Green Power to develop its Cesano licence. JUNE 24, 2022: Vulcan draws $76m equity investment from global top-five automaker Stellantis. APRIL 6, 2022: Binding purchase agreement with the largest municipal energy supplier in Germany for the provision of renewable heat.