Vulcan Energy Resources Ltd (ASX: VUL) shares are ending the week strongly.

In early trade, the ASX lithium stock was up as much as 7% to $4.61.

The lithium developer's shares have pulled back since then but remain well ahead of the market.

Why is this ASX lithium stock charging higher?

Investors have been buying the company's shares this morning after it released an update on its Zero Carbon Lithium Project in Germany.

According to the release, an agreement has been signed to finalise the consolidation of Vulcan's ownership of upstream Phase One lithium and renewable energy assets to align with the finalisation of Phase One financing.

This includes the conditional 100% acquisition of Geox GmbH. It is the owner and operator of geothermal wells, renewable energy generation assets and a geothermal and lithium licence around the City of Landau, co-located with Vulcan's lithium optimisation plant.

Management notes that this acquisition replaces a joint venture agreement and will allow for more efficient operation of Phase One, alongside Vulcan's other upstream operations.

The ASX lithium stock will acquire 100% of the shares in Geox for a deferred consideration of ~15 million euros. This consideration will be paid in cash, with payment to be made at the earlier of 30 June 2025 or Vulcan raising funding for Phase One.

What else?

The company also announced that an updated Environmental and Social Impact Assessment (ESIA) has been published. The ESIA is a prerequisite to raising sustainable or green debt finance and is an important third-party validation of the project's forecasted environmental and social impacts.

Pleasingly, the ESIA is in line with banks' and Export Credit Agencies' (ECAs) credit committee approval requirements.

Furthermore, a credit facility of 10 million euros has been agreed with BNP Paribas to provide short term flexibility prior to completion of the equity and debt financing of Phase One of the project.

The ASX lithium stock's managing director and CEO, Cris Moreno, was pleased with the developments. He stated:

The acquisition of Geox finalises the streamlining of Vulcan's upstream Phase One ownership. It will further derisk the Project, allowing for more efficient operations and improved decision-making during operational ramp-up and beyond.

This, together with the updating of our ESIA and credit facility agreement, demonstrates progress towards completion of Phase One financing and start of project execution for our flagship integrated renewable energy and Zero Carbon Lithium Project. I look forward to providing further updates on the Phase One financing of the Zero Carbon Lithium Project over the coming months.