Vulcan Energy Resources Ltd. has signed an MOU and a term sheet with Nobian. Nobian is the fourth large chlor-alkali producer in Europe after Inovyn, Dow and Covestro 1, and has extensive electrolysis operational experience. Chlor-alkali uses an electrolysis process which is similar to part of Vulcan's flowsheet.

Advantageously, one of Nobian's operations is located at the Höchst chemical park near Frankfurt, where Vulcan has secured a plot for the construction of its Central Lithium Plant (CLP). Vulcan and Nobian will assess the feasibility of a joint project for the development, construction and operation of the CLP, including the electrochemical conversion process of lithium chloride to battery quality lithium hydroxide. The joint development project is phased, accompanied by a joint progress decision at the end of the second phase.

Project investment from Nobian will be discussed on market terms following the conclusion of the Definitive Feasibility Study (DFS): Phase 1: joint DFS for the development, construction and operation of the CLP; Phase 2: operation of Vulcan's electrolysis Demonstration Plant at Nobian's existing site at Höchst, Frankfurt; Phase 3: partly in parallel with Phase 2, design/engineering, construction, start-up and joint operation of the CLP at commercial scale. Vulcan and Nobian will also discuss chlorine and hydrogen offtakes (via pipe), which are planned by-products of Vulcan's CLP. Nobian is located at the same chemical park as Vulcan and consumes both chlorine and hydrogen as part of its derivatives production.

Both products can be transported via an existing pipe network.