Renault Group [RNO], a top automotive player and pioneer in the European EV market, and German-Australian start-up Vulcan Energy Resources [VUL.AX], a global lithium chemical provider, have signed a deal to supply Renault with Vulcan’s low carbon lithium chemical product. The agreement is for an initial five-year term with an option to extend 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 Group will purchase between 6,000 to 17,000 metric tonnes per year of battery grade lithium chemicals produced in Germany by Vulcan.
Vulcan 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 per 50-kWh battery.
Renault Group, which 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.
The binding term sheet is conditional on the execution of a Definitive Agreement on materially similar terms by 20 November 2021.