Vulcan Energy (ASX: VUL) Secures EIB Financing Approval
Funding Participation Approved
Vulcan Energy (ASX: VUL) has secured the European Investment Bank’s (EIB) Board approval for involvement in its debt financing. The financing could reach up to €500 million (approximately A$819 million), contingent upon final due diligence and legal documentation completion.
Project Significance
The EIB’s financial backing is expected to be a cornerstone for Vulcan’s Phase One Project, which aims to produce 24,000 tonnes per annum of Lithium Hydroxide Monohydrate. This project aims to decarbonise the lithium supply chain for electric vehicles in Europe. Vulcan will supply significant auto and battery makers, including Stellantis, which is a major shareholder.
Executive Commentary
Group Chief Financial Officer, Felicity Gooding, remarked, “Approval by the EIB to participate in Vulcan’s debt financing process strongly reflects the significance of this project in Germany and broader Europe.” Gooding highlighted the need for support from financiers like the EIB to develop a sustainable lithium supply chain in Europe.
Future Outlook
Vulcan is progressing with its Phase One funding efforts, having received prior commitments from Export Finance Australia and indicated support from various European financial institutions.
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