Australian lithium miner Vulcan Energy Resources announced on Monday that it has worked with French carmaker RenaultSigned a long-term lithium supply agreement. It is the latest move by an electric carmaker to lock in the supply of the battery metal in anticipation of a surge in demand.
Under the agreement, starting in 2026, Vulcan will supply Renault with 6000 to 17000 tons of lithium a year from its geothermal brine deposits in Germany. If both sides agree, the five-year agreement can be renewed.
Renault has previously said it aims to have 90 per cent of its models purely electric by 2030. Vulcan's geothermal lithium production process has no carbon emissions and is its main attraction, the company said on Monday.
Vulcan plans to invest 1.7 billion euros ($2 billion) in geothermal power stations and lithium extraction facilities, with the goal of starting production of the white metal by 2024.
The global battle for lithium resources is becoming increasingly fierce. Last month, Vulcan signed a five-year lithium supply agreement with South Korea's LG Energy Solutions. The company also signed a memorandum of understanding with Stellantis, the world's fourth-largest carmaker, on lithium supply.