🔋Vulcan: Europe's Lithium Ace still Flying Under the Radar (ASX.VUL)🔋

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Vulcan $VULCAN ENERGY RESOURCES LTD(VUL.AU)$ is a pioneering Australian-based company focused on producing Zero-Carbon Lithium™ - battery-grade lithium extracted from geothermal brine, powered entirely by geothermal energy. No evaporation ponds, no fossil fuels. It is just a closed loop, carbo-neutral process operating in Germany’s Upper Rhine Valley.

🔄Unique Tech: Closed-loop, Zero-Carbon Lithium🔄

Vulcan’s proprietary Zero-Carbon Lithium™ process extracts lithium from deep geothermal brine, reinjects it, and uses the same thermal fluid to generate renewable electricity and heat. Traditional lithium extraction relies on hard rock mining or brine evaporation, which are energy-intensive, water-consuming, and carbon-heavy processes. In contrast, Vulcan uses geothermal brine to extract lithium while simultaneously generating renewable energy. This fully closed-loop system eliminates fossil fuel use, avoids surface evaporation ponds, and sets Vulcan apart from any other lithium producer globally.

🚗EV Outlook and Lithium Demand🚗

EV and energy storage sectors are forecast to drive a 60x increase in lithium demand by 2050 across Europe (compared to 2020 levels by the European Commission). This has led to debates on how the EU can secure enough supply. Vulcan’s Lionheart plant, set to deliver 24,000 tpa of lithium hydroxide by 2026, could supply enough material for over 500,000 EVs per year – all powered by clean geothermal energy.

Additionally, the UN Chief has urged tech firms to power all AI operations with clean energy by 2030, highlighting AI’s growing electricity demand and climate impact. This push aligns with companies like Vulcan, whose zero-carbon lithium and geothermal energy offer sustainable solutions for powering the data centers and batteries behind AI.

🏢Notable Investors and Institutional Support🏢

Vulcan Energy Resources has attracted a powerful mix of investors, combining government support, institutional capital and strategic partnerships. The most recent major milestone was the €104 million grant from the German federal and state governments, announced in July 2025, which covers around 24% of Vulcan’s market value. This significant public investment highlights how central Vulcan is to Europe’s clean energy and battery independency strategy.

Vulcan also counts Stellantis as a key shareholder and offtake partner, holding a 6-8% stake. Prominent Australian investors such as Hancock Prospecting (7.5% stake), CIMC Group and Victor Smorgon Group have also made sizable private investments. On the institutional front, Aquila Capital participated in a €30 million placement in 2025, and the European Investment Bank (EIB) has approved up to €500 million in debt funding. Together, these investors position Vulcan as one of the most well-supported emerging lithium producers in Europe.

📈My View📈

With major government funding, top-tier strategic investors, and secured offtakes, Vulcan looks deeply undervalued. The market hasn’t priced in its unique zero-carbon model or the critical role it will play in Europe’s EV supply chain. Significant upside remains.

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