Vulcan Energy Resources secured €2.2bn ($2.57bn) to fully fund phase one of the Lionheart lithium project in Germany. This financing allows the company to start construction immediately. The project positions Vulcan as a key supplier to Europe’s electric vehicle (EV) battery market.
Phase one of Lionheart will produce 24,000 tonnes of lithium hydroxide monohydrate (LHM) each year. This output can supply roughly 500,000 EV batteries annually. The project will also generate 275GWh of renewable electricity and 560GWh of heat for local communities. The facilities will operate for about 30 years.
Integrated Lithium and Renewable Energy Facilities
Lionheart combines geothermal-lithium brine wells, renewable energy plants, and a central lithium processing facility. Vulcan applies its proprietary VULSORB Direct Lithium Extraction technology to extract lithium efficiently. Most major contracts are signed, and ten-year lithium offtake agreements secure sales. The company expects commercial production to begin in 2028.
Vulcan’s financing package includes €1.18bn in senior debt from 13 financial institutions. The German government contributes €204m in grants. KfW invests €150m in equity, while strategic partners add €133m. An additional €528m comes from Vulcan’s underwritten equity raising. Together, these funds cover all phase one development costs.
SuperMetalPrice Commentary:
This €2.2bn financing represents a critical milestone for Vulcan Energy and Europe’s lithium supply chain. Lionheart shows how renewable energy integration can support sustainable lithium production. The project may accelerate EV adoption in Europe and set a global benchmark for clean lithium projects.
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