Vulcan Energy Resources Ltd (ASX: VUL) shares are sliding in late afternoon trade. At the time of writing, the Vulcan share price is slumping 2.7% to $7.21.
This comes despite the company announcing a collaboration with DuPont Water Solutions to advance its zero-carbon lithium extraction operations. Under the umbrella of one of the world's largest chemical companies, DuPont Water Solutions specialises in purification and specialty-separation technologies. The company operates on a global scale delivering sustainable methods of water management.
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What did Vulcan announce?
The Vulcan share price is trending lower despite the company releasing the positive announcement soon after market open this morning.
According to its release, the partnership with DuPont is designed to assist Vulcan with achieving the world's first zero-carbon lithium extraction.
Under the agreement, DuPont will supply direct lithium extraction (DLE) products that will test and scale-up the extraction process. This will include lithium selective sorbent, nanofiltration, reverse osmosis, ion exchange resins, ultrafiltration, and close-circuit reverse osmosis.
DuPont will conduct input and test-work during Vulcan's zero-carbon lithium project definitive feasibility study (DFS).
The latest deal is another positive push for Vulcan's efforts to accelerate the development of its project. The company noted that acquiring DLE products from a major supplier will minimise the technical risks associated with the extraction process.
Management commentary
Vulcan Managing Director Dr Francis Wedin touched on the partnership agreement, saying:
Collaborating with a company like DuPont is an important de-risking strategy for the DLE component of our Zero Carbon Lithium project. DuPont's diverse set of products which can be manufactured at scale are likely to be well-suited to sustainably extract the lithium from the brine.
We look forward to a successful long-term relationship with DuPont, to implement our strategy of becoming a major supplier of our unique Zero Carbon Lithium hydroxide to the European electric vehicle battery market.
DuPont Global Vice President and General Manager HP Nanda went on to add:
We are proud to bring our expertise in water filtration and purification to Vulcan Energy's Zero Carbon Lithium project to minimise the carbon and water footprint of lithium extraction and production — to more sustainably power mobility for years to come.
Update on the Vulcan share price
It has been an interesting few months for the Vulcan share price, particularly since the start of the year. Vulcan shares have risen to astronomical highs lately, gaining nearly 160% year to date.
While Vulcan shares are sliding today, numerous positive company updates, as well as strong investor sentiment surrounding the lithium industry, have helped push its shares higher in 2021.
Based on the current share price, Vulcan has a market capitalisation of roughly $775 million.
