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Australia’s Vulcan Energy surges on Renault supply deal

By Mensholong Lepcha

08:47, 22 November 2021

Person charging a Renault EV
Person charging a Renault EV – Photo: Shutterstock

Shares in Australian lithium producer Vulcan Energy Resources surged on Monday after the company announced a supply deal with French automotive company Renault.

Under the terms of agreement, Renault will purchase between 26,000 to 32,000 tonnes of battery grade lithium chemicals over six years from Vulcan Energy.

Shares in Vulcan Energy jumped 7.1% to AUD10.90 on Monday.

Commercial delivery set for 2026

Vulcan Energy, which calls itself a zero carbon lithium company, said the deal will allow Renault to avoid between 300kg and 700kg of carbon dioxide equivalent emitted for a 50 kilowatt-hour battery.


16,001.20 Price
+0.470% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 22:00 (UTC)
Spread 7.0


2,072.25 Price
+1.760% 1D Chg, %
Long position overnight fee -0.0193%
Short position overnight fee 0.0111%
Overnight fee time 22:00 (UTC)
Spread 0.30


38,847.00 Price
-0.010% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 106.00

Oil - Crude

74.50 Price
-1.560% 1D Chg, %
Long position overnight fee -0.0136%
Short position overnight fee -0.0083%
Overnight fee time 22:00 (UTC)
Spread 0.040

The deal is for an initial six-year term and the start of commercial delivery is set for 2026 with pricing based on a market price or on a take-or-pay basis, the company said.

Shares in Vulcan Energy have surged over 290% in 2021, as of Monday’s close.

Read more: Evergrande’s EV unit to raise 6m for vehicle production

Markets in this article

36.26 USD
0.16 +0.440%
36.26 USD
0.16 +0.440%
Vulcan Energy Resources Limited
2.45 USD
-0.25 -9.430%

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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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