Australian Securities Exchange (ASX)-listed Vulcan Energy Resources has begun the commissioning of its lithium hydroxide optimisation facility, the CLEOP.

This marks a significant achievement as Vulcan moves closer to producing Europe’s first battery-grade lithium hydroxide from a local lithium resource.

Vulcan’s CLEOP downstream facility is situated near Frankfurt, Germany, within the Höchst Chemical Park. The company will also build its commercial Central Lithium Plant (CLP) at this location.

The CLEOP serves as the company’s pre-commercial facility for optimising downstream processes.

At the CLEOP, lithium chloride solution from Vulcan’s wholly owned upstream operations will be processed into battery-grade lithium hydroxide monohydrate (LHM).

The company noted that the main structure and utility systems have been finished, enabling the initial energisation to begin.

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Vulcan added that power has been supplied to the plant for the first time via the main switchboard, marking a crucial step for the electrolysis facility.

Upcoming milestones will include the commencement of lithium hydroxide production and the first batch of battery-grade lithium hydroxide monohydrate (LHM).

Once operational, CLEOP will transform lithium chloride (LiCl) from the company’s upstream Lithium Extraction Optimisation Plant (LEOP) into battery-grade LHM.

This will be the first instance of LHM in Europe being produced entirely from domestically sourced raw materials through to the final product.

The LEOP and CLEOP will play crucial roles in process optimisation and staff training, setting the stage for the company’s commercial operations.

Vulcan indicated that the CLEOP will also be utilised for training personnel and refining processes in a pre-commercial environment.

The company anticipates that LHM production at the CLEOP will greatly advance the product qualification process needed by offtake partners.

This will help minimise potential delays and expedite the market introduction of the product once commercial production begins.

Vulcan managing director and CEO Cris Moreno said: “The start of commissioning of Vulcan’s downstream lithium optimisation facility is a significant milestone for Europe’s critical raw material independence, and for its electric vehicle supply chain independence.

“In the coming months, Vulcan will begin to transport the first LiCl parcels from our upstream facility through to CLEOP for production of the first battery-grade lithium hydroxide products in Europe, all from a European lithium resource.

“We look forward to welcoming senior German and EU Government ministers and dignitaries to an official opening of this important facility for the German and European battery industry.”