Australian lithium producer Vulcan Energy said on Tuesday it is exploring to jointly develop its Central Lithium Plant with Frankfurt-based chemical producer Nobian.
The potential deal comes as demand for lithium hydroxide sees a surge due to shifting preferences towards electric cars, with Vulcan looking to cash in on its position to be a key supplier of raw materials for European automakers, including Volkswagen, Stellantis and Renault.
Lithium hydroxide is a crucial chemical used in making batteries for electric vehicles.
Vulcan and Nobian signed an MoU and a term sheet to explore the joint development, which will occur in phases. The company had already secured a site in Frankfurt for the “zero carbon” lithium plant.
Jürgen Baune, managing director at Nobian, said the deal will allow Nobian to become a key player in supplying raw materials to the battery industry.
($1 = 0.8826 euros)
(By Savyata Mishra; Editing by Uttaresh.V)