Vulcan Energy Resources Limited announced the start of lithium hydroxide production at the Company's downstream Central Lithium Electrolysis Optimisation Plant (CLEOP) in Industrial Park Höchst, Frankfurt, Germany. Key highlights: The first lithium hydroxide has been produced by Vulcan in Germany from the processing of high purity lithium chloride concentrate extracted from brines at its Adsorption-type Direct Lithium Extraction (A-DLE) optimisation plant. This represents the first sustainable lithium hydroxide fully domestically produced in Europe, including upstream raw material, in one integrated supply chain.

The downstream optimisation plant will supply lithium hydroxide for the battery-grade qualification process with Vulcan's automotive and battery offtake partners including Stellantis, Renault, LG and Umicore, while the Company's Phase One commercial plant is being constructed. Phase One of the project, designated Lionheart, will supply approximately 24,000 tonnes per annum of lithium hydroxide, enough for approximately 500,000 electric vehicles (EVs) per annum. The Phase One combination of upstream A-DLE production from deep, naturally heated brine reservoirs, combined with downstream conversion to lithium hydroxide using electricity only, represents one of the lowest cost lithium chemical supply chains in the world.

In addition, the Phase One location in Central Europe is in close proximity to end-user automotive and battery customers, further enhancing the cost competitiveness and low carbon footprint of Vulcan's operations: The Company's Phase One upstream and downstream plants will exclude fossil fuels in both the extraction and processing of lithium, meaning the process has the lowest carbon footprint of any lithium production globally. The operations have been assigned Dark Green by S&P Global Ratings, the highest ever received by a Metals and Mining company globally. S&P Global Ratings' methodology includes six shades, with a Dark Green rating awarded to activities that correspond to the long-term vision of the low-carbon climate resilient future.

The Phase One process also involves the co-production of valuable renewable heat and power. The excess heat and power will be used within local communities, furthering the decarbonisation of industries within proximity. The Company's project financing process continues, led by BNP Paribas, with a debt structuring group including the European Investment Bank, Export Credit Agencies from Australia, France, Italy, and Canada, as well as major European banks ING, Unicredit, ABN-AMRO, and Natixis.