Vulcan signs eight-year lithium supply deal with Glencore, securing Phase One financing and expanding Europe’s battery materials supply chain.
Vulcan Energy has announce the signing of a binding offtake agreement with a wholly owned subsidiary of Glencore plc, one of the world’s largest natural resource companies. This agreement covers the supply of battery-quality lithium hydroxide monohydrate (LHM) from Vulcan’s Phase One Lionheart Project. The Lionheart Project is designed to produce 275 GWh of power and approximately 24,000 tonnes of LHM annually, sufficient to support around 500,000 battery electric vehicles each year.
Under the terms of the agreement, Glencore will purchase between 36,000 and 44,000 tonnes of LHM over an initial eight-year period. Glencore, headquartered in Switzerland, is a multinational commodity trading and mining company operating over 60 assets globally and producing more than 60 commodities. The company maintains offices in over 30 countries, making it a significant partner for Vulcan’s European-focused expansion.
Glencore joins Vulcan’s other Phase One offtake partners, including Stellantis, Umicore, and LG Energy Solution. With this agreement, Vulcan has now secured all binding offtake agreements necessary to support financing for Phase One. Each of these agreements is take-or-pay, with established pricing mechanisms that include a combination of fixed, floor-ceiling, and index-linked floating prices over six to ten years, ensuring predictable revenue streams during the debt repayment period.
This agreement also opens the door for potential partnerships with European end-users. Vulcan is currently in discussions with additional prospective customers, including German and other European automakers, who have expressed interest in sourcing additional volumes from Phase One. The company is targeting the finalization of its Phase One financing package, along with project and financing agreements, in Q4 2025, ahead of construction commencement for the commercial plants.
Cris Moreno, Vulcan Energy’s Managing Director and CEO, remarked, “We are excited to establish a long-term partnership with Glencore. This agreement, a critical component of Phase One financing, complements our existing mix of offtake partners, spanning an automaker, a battery producer, a cathode manufacturer, and a global commodities trader, all with strong European market connections. It also provides Vulcan with flexibility to onboard additional European customers while leveraging Glencore’s market expertise, which is a significant strategic advantage.”
Robin Francois, Head of Lithium at Glencore, added, “We are pleased to partner with Vulcan to support the development of the German and wider European lithium supply chain. This agreement further expands our lithium portfolio and reinforces Glencore’s position as a leading supplier of battery raw materials.”
Key Terms of the Agreement:
This partnership underscores Vulcan’s commitment to sustainable lithium production while strengthening Europe’s domestic supply chain for battery-grade lithium.
