Vulcan Energy (ASX:VUL) Awarded EU Strategic Project Status under Critical Raw Materials Act
Strategic Project Status
Vulcan Energy (Vulcan, ASX: VUL, FSE: VUL) announces that its Phase One Lionheart Project has been designated a Strategic Project under the European Commission’s Critical Raw Materials Act (CRMA).
CRMA Objectives
The CRMA aims to secure a sustainable supply chain for critical raw materials like lithium in Europe by increasing domestic capacities, improving access to funding, and upholding social and environmental standards. Strategic Projects, including Vulcan’s, focus on enhancing EU capacity to extract, process, and recycle strategic raw materials while diversifying supplies from third countries.
Project Financing
The Strategic Project status permits Vulcan to request a meeting with the CRMA financing subgroup, facilitating the Project’s progression through a CRM Board subgroup to discuss financing from private and public sources. Additionally, regional and national authorities may access funding from the European Development Fund and Cohesion Fund to support the project.
Application Assessment
The European Commission received 170 applications for Strategic Project status. Vulcan’s Project was selected based on assessments by external experts covering technical, financial, ESG-related aspects, and resource classification.
Sustainability Commitment
Vulcan demonstrates its commitment to sustainable lithium production through advanced extraction technologies powered by geothermal renewable energy, aligning with Europe’s integrated lithium and renewable energy objectives.
Executive Comments
Managing Director and CEO Cris Moreno stated, “Achieving Strategic Project status from the European Commission validates the importance of our integrated lithium and renewable energy project to European industry, and builds momentum for the delivery of Europe’s first fully domestic and sustainable lithium value chain.
“The CRMA plays a pivotal role in driving change and highlighting the importance of sustainable raw material extraction in Europe. With access to Europe’s largest lithium resource, our Project is strategically positioned to support the CRMA benchmarks and diversify the EU’s lithium supply away from third countries.”
Motley Fool contributor Aaron Shaw has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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