Vulcan Energy Resources has secured a €2.2 billion ($3.93 billion AUD) financing package to fully fund the construction of its Phase One Lionheart lithium and renewable energy project in Germany’s Upper Rhine Valley. Vulcan Energy Resources is focused on producing lithium hydroxide from geothermal brines, with a net zero carbon footprint. The company also aims to generate renewable energy as part of its lithium extraction process.
The Vulcan board has made a Final Investment Decision, and construction is scheduled to begin in the coming days, aligning with the company’s target of Q4 2025. Phase One Lionheart aims to produce 24,000 tonnes of lithium hydroxide per year, sufficient for approximately 500,000 electric vehicle batteries. Furthermore, the project is expected to generate 275 GWh of renewable electricity and 560 GWh of heat annually for local communities.
The financing package includes €1.185 billion in debt from 13 European financial institutions, €204 million in German government grants, and €263 million in strategic investments from HOCHTIEF, Siemens Financial Services, and Demeter. Additionally, equity support encompasses €528 million from an underwritten share raising by Vulcan at €2.24 per share, which includes institutional placements and entitlement offers.
First commercial lithium production is targeted for 2028, following a 2.5-year construction period. The project has received a Dark Green rating from S&P Global, representing the highest rating ever awarded to a mining and metals company.
