EQS-News: First major project contract for Phase One signed with NESI

First major project contract for Phase One signed with NESI
 

Construction contracts are a prerequisite for finalising project financing, scheduled for H2 

Vulcan Energy (Vulcan, ASX: VUL, FSE: VUL, the Company) is pleased to announce it has signed a supply contract with Canadian electrochemistry company, NORAM Electrolysis Systems (NESI), as the exclusive electrolysis technology supplier for the Phase One Lionheart Project (the Project).

Key highlights
 

• The contract agreement between the Company and NESI will include services at the technology, process engineering, procurement contracting, and commissioning support stages of development
• Under the terms of the agreement, NESI will be engaged at the Central Lithium Plant (CLP), located in Industrial Park Höchst, Frankfurt
• NESI’s technology package includes NORSCAND® Electrolysers, with electrodes being provided by Permascand AB in Sweden, which are intended to allow for green power to be used to produce high purity, low-cost lithium hydroxide for the European battery electric vehicle (EV) market
• The signing of the contract follows the successful energisation by NESI of the Company’s 100% owned Central Lithium Electrolysis Optimisation Plant (CLEOP) in November 2024, producing the first lithium hydroxide fully domestically produced in Europe. It also follows basic engineering completed with NESI and payments made on long lead items to further accelerate the schedule
• The significance of the contract signing is reflected in the Joint Declaration of Intent signed between Germany and Canada last week[1], which is designed to deepen co-operation to secure critical mineral supply chains. By partnering with Germany, Canada will boost domestic investment while accelerating the clean energy transition
• The Company is aiming to finalise additional major project contracts in the coming weeks, final project financing agreements thereafter, and commence full Project construction in H2 2025.

Vulcan Energy’s Managing Director and CEO, Cris Moreno, commented: “The signing of the contract with NESI is an important step ahead of the construction of our Central Lithium Plant.

“Our partnership with NESI to date has been key to our success at CLEOP, and its technology is a global leader in producing lithium hydroxide through electrolysis. 

“This is yet another milestone in our aim to deliver a local, low-cost source of sustainable lithium for European EV batteries.”

NESI CEO, Jeremy Moulson, commented: “We are proud to again be partnering with Vulcan given the significance of the Project and position it holds in delivering green lithium for EV batteries in Europe.

“We have strong alignment with Vulcan in that we both demand quality in our product and processes, and we both have an unwavering commitment to sustainability.

“We are looking forward to further contributing our technology and expertise to such an important project and further strengthening our partnership.”

Material terms of the NESI agreement 

The NESI agreement otherwise contains the following material terms:

1. It covers the supply of electrolysers, transformers, rectifiers and polarization rectifiers.
2. NESI will complete detailed engineering to build on the basic engineering already completed.
3. Vulcan shall carry out pre-commissioning, commissioning and testing of the package supplied by NESI, and NESI is obligated to support Vulcan in carrying out these steps.  If commissioning is not achieved, NESI is obligated to remedy the package supplied.
4. Vulcan can request other services from NESI pursuant to an agreed list of rates, including services in relation to the installation, pre-commissioning, commissioning or testing of the package or training in relation thereto.
5. NESI is subject to a detailed performance guarantee regime, with accompanying liquidated damages payable on both delay in delivery of the package and underperformance of the package.
6. NESI provides advance payment bonds, performance bonds and warranty bonds to Vulcan, which is intended to mitigate Vulcan’s cost exposure and incentivise performance from NESI.
7. Each party shall indemnify the other against all losses resulting from injury, death, or property damage.
8. The agreement continues until completion of the obligations, unless terminated upon 30 days’ notice if the Defaulting Party fails to pay monies owed, breaches materials obligations (without rectifying within 20 days or an agreed longer period), files for bankruptcy, receivership, liquidation, or insolvency (unless dismissed within 30 days) or becomes insolvent
   1. Upon termination by Vulcan, Vulcan must pay NESI the price for any parts supplied or work partially done, NESI must return all paid instalments for undelivered items, and deliver relevant documents for delivered parts
   2. Upon termination by NESI, Vulcan must pay NESI the price for any parts supplied or work partially done, Project wind-down costs, and all costs incurred by NESI under the Agreement, and NESI must return all paid instalments for undelivered items and deliver relevant documents for delivered parts.

<ENDS>

For and on behalf of the Board

Daniel Tydde | Company Secretary

Further information

Judith Buchan | Communications Lead – APAC | [email protected] | +61 411 597 326

Please contact Vulcan’s Legal Counsel Germany, Dr Meinhard Grodde, for matters relating to the Frankfurt Stock Exchange listing on [email protected].

About Vulcan Energy

Vulcan Energy (ASX: VUL, FSE: VUL) is building the world’s first carbon neutral, integrated lithium and renewable energy business to decarbonise battery production. Vulcan’s Lionheart Project, located in the Upper Rhine Valley Brine Field bordering Germany and France, is the largest lithium resource in Europe[2] and a tier-one lithium project globally. Harnessing natural heat to produce lithium from sub-surface brines and to power conversion to battery grade material and using its in-house industry-leading technology VULSORB®, Vulcan is building a local, low-cost source of sustainable lithium for European electric vehicle batteries. For more information, please go to https://v-er.eu/  

About NESI

Founded in 1990, NORAM Electrolysis Systems Inc. (NESI) develops electrochemical processes that combat climate change, waste management, and pollution in industrial chemical production. Its flagship technology, the NORSCAND® electrolyser, is a versatile cell designed for various salt-splitting chemistries. It has been successfully used to produce high-purity lithium hydroxide from lithium sulfate or lithium chloride, and to recover acid and caustic from sodium sulfate. The NORSCAND® system can be adapted to meet different process chemistry needs.

Disclaimer

Some of the statements appearing in this announcement may be in the nature of forward-looking statements. You should be aware that such statements are only predictions and are subject to inherent risks and uncertainties. Those risks and uncertainties include factors and risks specific to the industries in which Vulcan operates and proposes to operate as well as general economic conditions, prevailing exchange rates and interest rates and conditions in the financial markets, among other things. Actual events or results may differ materially from the events or results expressed or implied in any forward-looking statement. No forward-looking statement is a guarantee or representation as to future performance or any other future matters, which will be influenced by a number of factors and subject to various uncertainties and contingencies, many of which will be outside Vulcan’s control. Vulcan does not undertake any obligation to update publicly or release any revisions to these forward-looking statements to reflect events or circumstances after today's date or to reflect the occurrence of unanticipated events. No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions or conclusions contained in this announcement. To the maximum extent permitted by law, none of Vulcan, its Directors, employees, advisors or agents, nor any other person, accepts any liability for any loss arising from the use of the information contained in this announcement. You are cautioned not to place undue reliance on any forward-looking statement. The forward-looking statements in this announcement reflect views held only as at the date of this announcement. This announcement is not an offer, invitation or recommendation to subscribe for, or purchase securities by Vulcan. Nor does this announcement constitute investment or financial product advice (nor tax, accounting or legal advice) and is not intended to be used for the basis of making an investment decision. Investors should obtain their own advice before making any investment decision.
 

Competent Person Statement

The information in this announcement that relates to estimates of Mineral Resources and Ore Reserves is extracted from the Bridging Engineering Study Results announcement on 16 November 2023, the Future Phase Pipeline – Mannheim Resources Growth announcements on 7 and 9 July 2025[3] and End of Validation review contained in the Prospectus released on 18 December 2024, all of which are available to view on Vulcan's website at http://v-er.eu. Vulcan confirms, that in respect of the estimates of Mineral Resources and Ore Reserves included in this announcement:

1. it is not aware of any new information or data that materially affects the information included in the original market announcement, and that all material assumptions and technical parameters underpinning the estimates in the original market announcement continue to apply and have not materially changed;
2. the form and context in which the Competent Persons' findings are presented in this announcement have not been materially modified from the original market announcement; and
3. all material assumptions underpinning the production targets (and the forecast financial information derived from such production targets) included in this announcement continue to apply and have not materially changed.

^[1] https://www.pm.gc.ca/en/news/news-releases/2025/08/26/canada-announces-new-partnership-germany-critical-minerals-and

^[2] On a lithium carbonate equivalent (LCE) basis, according to public information, as estimated and reported in accordance with the JORC Code 2012. See Appendix 4 of Vulcan's Equity Raise Presentation dated 11 December 2024 for comparison information.

^[3] The Mannheim Announcement relates solely to the lithium brine Resource estimation for the Mannheim sector.