Battery raw material Economical zero-carbon lithium "Made in Germany"

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Can lithium mining from domestic sources compete with global suppliers? Yes, says Vulcan Energy Resources. Moreover, as their current feasibility study is intended to show, the battery raw material obtained here is even particularly environmentally friendly and economical in a global comparison.

Vulcan Energy Resources (Vulcan) has announced the results of its Definitive Feasibility Study (DFS) for the first phase of its CO2-free lithium project in the Upper Rhine Valley. The company is a member of the European Battery Alliance and aims to become the world's first integrated producer of lithium chemicals and renewable energy without causing emissions. In Phase 1, Vulcan plans to produce 24,000 tons of Lithium Hydroxide Monohydrate (LHM) per year. Compared to the preliminary feasibility study (Pre-Feasibility Study), this is an increase of 60%. At the end of December 2022, the Rhineland-Palatinate State Office for Geology and Mining approved the main operational plan for the construction and operation of the lithium extraction demonstration plant. The plant in Landau, Rhineland-Palatinate, is already under construction.

The reason for the increase in production is the identification of new production sites, which are expected to be operational by the end of 2025. In addition to lithium, more than 300 GWh/a of renewable electricity and more than 250 GWh/a of renewable heat are to be generated annually. Investments for the first phase are estimated at 1.496 billion euros, while the production costs per ton of Lithium Hydroxide Monohydrate (LHM) amount to 4,359 euros. Current manufacturing costs in other regions, such as Latin America, are more than 5,000 euros.

Lithium extraction and net energy gain

"I would like to thank our entire Vulcan team and experts for the tremendous efforts that have gone into creating this feasibility study. It proves that the production of lithium in Germany is not only more economical than in other regions of the world, but also the most environmentally friendly," says Horst Kreuter, CEO of Vulcan Energy Resources. "No fossil fuels are used for production; instead, renewable energy is provided for the regional electricity and heating grid. With 1.36 tons of water, our facilities have the lowest water consumption per ton of LHM in the world. This is less than all other currently used production processes."

The DFS for Phase 1 is based on technical data from the operational geothermal plants and lithium pilot plants of Vulcan. The study takes into account the results from the pilot production using the high-performance proprietary sorbent Vulsorb, as well as over 13,000 operating hours of the first pilot plant (PP1) running since April 2021. With its project, Vulcan claims to cover the entire value chain of manufacturing industrial-grade lithium, demonstrating that choosing a sustainable lithium production process with the right technology can be more economical than conventional lithium mining.

Commercial extraction is scheduled to start in 2025

The work does not stop here but starts here, adds Cris Moreno, Co-CEO of Vulcan: "We aim to start commercial production by the end of 2025 and then ramp it up. This is a tight timeframe, and we are aware of the huge challenge that lies ahead for us as a growing company." With the DFS, they have already reached a significant milestone.

It is a race against time to achieve NetZero. Vulcan is contributing its part by helping to decarbonize two traditionally very carbon-intensive industries – energy and the battery industry. "Our Zero Carbon Lithium project in the Upper Rhine combines the production of renewable heat and lithium production in an innovative and circular manner. We are very proud to be able to provide CO2-free and domestic resources from Europe for Europe."

Comprehensive final feasibility study

The DFS was conducted for the underground geology, field development planning, resource and reserve estimation, infrastructure of above-ground pipelines, geothermal plant, lithium extraction plant (LEP), and central lithium (hydroxide) plant (CLP), as well as for the technical planning. The review and approval of the resources and reserves were carried out by specialists from the oil and gas industry, GLJ Ltd., in collaboration with the lithium brine specialists from Groundwater Insight. The purpose of the DFS is to provide the company with a decision-making tool to bring the project into the next phase of development by bridging the technical phase to execution and construction.

Phase 2 of the DFS is to follow. It aims for a further modular production of 24,000 tons according to the PFS study from 2021, which, according to Vulcan, has been updated due to new technical data from Phase 1 of the DFS. (me)