The concrete mixers are rolling at Vulcan Energy’s Lionheart geothermal power plant in Landau, and for a company that has spent much of 2026 watching its stock price slide, any sign of physical progress is welcome. The lithium developer announced Monday that above-ground construction has officially begun at the site, with foundation and concrete work now underway for the power plant buildings and process facilities. Earthworks are complete, and the company is simultaneously building out road infrastructure on the 10-hectare industrial plot in the “Messegelände Südost” industrial park.
The market took notice, but only just. Vulcan’s shares climbed 2.74 percent to €1.65 on the news, a modest rebound from Friday’s fresh 52-week low of €1.60. The stock has now shed roughly 35 percent since the start of the year and remains 58.56 percent below its 52-week high of €3.98, a level last seen in October 2025.
Lionheart represents the first phase of Vulcan’s production ambitions. Once operational, the facility is designed to churn out approximately 24,000 metric tons of lithium hydroxide monohydrate annually — enough to supply around 500,000 electric vehicle batteries. The integrated model also calls for 275 gigawatt-hours of green electricity and 560 gigawatt-hours of heat each year for local off-takers. On the lithium side, offtake agreements are already in place with Volkswagen, Stellantis, Renault, Umicore, and LG Energy Solution.
The transition from planning to construction has come at a cost. Vulcan posted a net loss of roughly €69.6 million for fiscal 2025, reflecting the rising expenses associated with moving into the commercial construction phase. The company’s financial backstop is a €2.2 billion financing package finalized in May 2026, which includes a €250 million commitment from the European Investment Bank. On July 15, Vulcan confirmed it had received the first strategic equity tranche under that structure, signaling that the funding mechanism is functioning as designed.
Should investors sell immediately? Or is it worth buying Vulcan Energy?
All eyes now turn to July 30, when Vulcan releases its second-quarter report. Investors will be looking for three things in particular: progress at the Central Lithium Plant in Frankfurt-Höchst, where lithium chloride is converted into battery-grade lithium hydroxide; an update on cash reserves and investment spending following the activation of initial financing tranches; and confirmation that the 2028 production start target remains achievable.
Technically, the stock is flashing oversold signals. The 14-day relative strength index sits at 35.4, a level that often precedes a consolidation or a rebound. But the gap between operational milestones and share-price performance is wide, and it cannot be blamed entirely on company-specific issues. Volatile lithium carbonate prices and the long lead times inherent in geothermal-lithium projects have weighed on the entire sector.
The quarterly report will test whether management can keep the Lionheart ramp-up within its budget and financing guardrails. With 24,000 tonnes of annual lithium hydroxide output as the prize, the stakes for Vulcan — and its long-suffering shareholders — could hardly be higher.
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