Nobian will assume 50% ownership of the entity which
includes the main lithium plant, Vulcan said.
Vulcan is also in talks with "strategic counterparties" for
equity funding of the first special purpose company and planning
similar ownership structure to bring in project-level equity
investment, it said.
($1 = 0.9057 euros)
(Reporting by Sameer Manekar in Bengaluru; Editing by Maju
Samuel and Arun Koyyur)
(Updates with details of project funding)
April 27 (Reuters) - Vulcan Energy Resources Ltd said on Thursday chemicals producer Nobian GmbH would
invest 161 million euros ($177.76 million) in the lithium
developer's main lithium plant in Germany in exchange for a 50%
stake in the project.
Vulcan is building out lithium production in Germany that
will tap renewable energy from geothermal power in the Upper
Rhine Valley. It plans to produce 24,000 tonnes per year lithium
hydroxide monohydrate in its first phase.
Under the strategic non-binding agreement, Nobian's
investment will fund half of the projected capital expenditure
for the lithium plant, with the rest to be secured via project
debt finance.
As part of the agreement, Vulcan's project will be split
into two companies - one entity owning infrastructure to produce
renewable energy and lithium chloride and the other controlling
the main lithium plant.
"It is expected that Nobian's equity contribution, alongside
expected project debt finance to be obtained by the company ...
will fully cover the funding requirement for the (plant),"
Vulcan said.
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