BASF partnership, potential additional phase.

Vulcan Energy Resources and BASF have entered into a partnership to develop a geothermal heat project at BASF’s Ludwigshafen site, aiming to supply 2,000–2,500 GWh annually of renewable heat. This collaboration also includes evaluating the construction of a lithium extraction plant on-site to process lithium chloride into battery-grade lithium hydroxide for the European EV market. As the partnership is established, the progression to additional projects, such as a lithium extraction facility, is contingent upon the outcomes of initial evaluations and feasibility studies. While this partnership showcases Vulcan’s growing reputation and the potential for additional phases, it also adds credibility to Vulcan’s approach. We uphold our price target of EUR 10.50 with a BUY rating.

BEW funding secured. Precommercial production commenced.

Vulcan Energy Resources secures EUR 100m in BEW funding from the German Federal Ministry of Economics and Climate Protection, accelerating its “Heat4Landau” project to deliver renewable heat to the Landau area. In a major milestone, Vulcan has also commenced pre-commercial lithium hydroxide production at its new CLEOP facility in Frankfurt. Reinforcing its sustainable credentials, Vulcan received a Dark Green rating from S&P Global, enhancing access to favorable financing. While the financing timeline has led to a revised commercial start date in 2027, Vulcan remains on track to support Europe’s transition to sustainable lithium and renewable energy. We uphold our price target of EUR 10.50 with a BUY rating.