Renault has signed an initial five-year deal to purchase 6,000-17,000tpa of lithium from 2026.
The French carmaker said the deal with the low-carbon producer would allow Renault Group to avoid from 300-700 kg of CO2 for a 50 kWh battery.
The agreement follows a similar deal struck with battery major LG Energy Solution last month. Vulcan has also signed an MoU with auto group Stellantis.
Analysts from London broker SP Angel described the latest deal as "a brave and maybe slightly desperate move by Renault to lock in European raw material supply as required by EU regulations on local content".
"There are relatively few prospective new lithium producers in Europe, limiting options open to battery manufacturers and automotive assemblers," said SP Angel.
"In the raw materials game of musical chairs, there seem to be relatively few seats available for when the music stops and battery production ramps up," the UK firm continued.
European car manufacturers will have welcomed Rio Tinto's decision last month to move ahead with its Jadar lithium project in Serbia, where production is scheduled to begin in 2029.
