How Vulcan Energy’s NESI Deal Could Transform Europe’s Green Lithium Supply

Strategic Partnership for Sustainable Lithium Production

Vulcan Energy Resources has taken a significant stride forward in its ambition to supply sustainable lithium to Europe’s burgeoning electric vehicle market. The company announced the signing of a major contract with Canadian electrochemistry specialist NORAM Electrolysis Systems Inc. (NESI), appointing them as the exclusive supplier of electrolysis technology for the Phase One Lionheart Project’s Central Lithium Plant (CLP) in Frankfurt.

This agreement is more than a simple supply deal; it encompasses a comprehensive suite of services including technology provision, process engineering, procurement contracting, and commissioning support. NESI’s flagship NORSCAND® electrolysers, equipped with electrodes from Sweden’s Permascand AB, are designed to leverage green power to produce high-purity lithium hydroxide at competitive costs, an essential component for European battery manufacturers.

Building on Proven Technology and Milestones

The contract follows the successful energisation of Vulcan’s Central Lithium Electrolysis Optimisation Plant (CLEOP) in late 2024, which marked the first lithium hydroxide production fully domestically sourced in Europe. This milestone validated NESI’s technology and set the stage for scaling up to commercial production. Vulcan has already completed basic engineering with NESI and advanced payments for long lead items, accelerating the project timeline.

Vulcan’s CEO, Cris Moreno, emphasised the importance of this partnership, noting that NESI’s technology is a global leader in electrolysis-based lithium hydroxide production. The collaboration is a cornerstone in Vulcan’s strategy to establish a local, low-cost, and sustainable lithium supply chain for Europe’s EV battery sector.

Geopolitical Context and Project Outlook

The timing of this contract aligns with a recent joint declaration of intent between Germany and Canada aimed at strengthening cooperation on critical mineral supply chains. This geopolitical backdrop underscores the strategic importance of Vulcan’s project in the broader context of Europe’s clean energy transition and supply chain security.

Under the contract’s terms, NESI is responsible for delivering electrolysers, transformers, rectifiers, and related equipment, with detailed engineering and performance guarantees ensuring accountability. Vulcan will oversee commissioning and testing, supported by NESI’s expertise. The agreement includes robust protections such as advance payment bonds and liquidated damages to mitigate risks.

Looking ahead, Vulcan plans to finalise additional major contracts in the coming weeks, secure project financing, and commence full construction of the Central Lithium Plant in the second half of 2025. This progression will be critical to meeting the growing demand for green lithium in Europe’s EV market.