Australia-listed Vulcan Energy Resources is starting construction of its sorption demonstration plant in Landau, Germany, Kallanish learns from a company update.

The on-site construction follows completion of FEED studies, mobilisation, and delivery of key components. The plant will be built on the premises of Laundau’s energy utility Energie Südwest.

Vulcan’s ceo Francis Wedin says the milestone is the “logical next step” for the company developing the so-called Zero Carbon Lithium project in the Upper Rhine Valley, Germany. Cold commissioning of the demo plant is scheduled for late 2022 and start of operations for early 2023.

The plant is aimed at demonstrating the viability of the sorption-type direct lithium extraction (DLE) approach chosen by Vulcan. The company plans to use the technology to produce lithium carbonate from geothermal waters because of its current successful commercial deployment globally. It defends that sorption has shown to optimally produce lithium chemicals from hot brines with low operating costs and sustainable footprint.

Vulcan adds the technology offers “several advantages” compared to traditional brine evaporation methods: higher lithium recovery; lower water and chemical consumption; shorter lead time to production; and minimal land footprint.

The company will use heat from its producing geothermal operations instead of natural gas to heat the brine to run the sorption DLE. Other than financial and environmental benefits, this will enable the technology to be used on lower grade lithium brines compared to salars, Vulcan explains.

Wedin’s update also noted the lithium hydroxide production demonstration plant, also known as LiLy or CLP-Demo Plant, is progressing concurrently and on track to start in late Q1 2023.

The aim is to have a definitive feasibility study for Phase 1 of the project and pre-feasibility study for Phase 2 by Q1 2023. The forecast completion factors in “unprecedented global supply chain issues with sourcing certain pieces of equipment.” Vulcan doesn’t rule out possible project delays.

The €1.8 billion ($1.83 billion) project is planned to start the 15,000 tonnes/year Phase 1 in 2024 and the 25,000 t/y Phase around 2025. Planned lithium hydroxide production in the first 5-6 years of operation is fully booked with offtake agreements from Volkswagen Group, Stellantis, Renault, Umicore and LG Energy Solution.