Vulcan Energy Resources has officially approved the construction of its flagship lithium production facility in Germany, marking a pivotal moment for the European battery materials sector. The company’s final investment decision for the initial phase of its Lionheart project in the Upper Rhine Valley is backed by a comprehensive financing package valued at approximately €2.2 billion.
Strategic Shift for European Supply Chains
This development positions Vulcan Energy to become a domestic supplier of sustainably produced lithium hydroxide, a critical component for electric vehicle batteries. The European market has historically relied on complex international supply chains for this essential raw material. The project’s strategic significance is underscored by offtake agreements already in place with several major automotive manufacturers and battery producers.
Key Project Specifications:
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- Annual production target: 24,000 tonnes of lithium hydroxide monohydrate
- Estimated output: Sufficient battery-grade lithium for approximately 500,000 electric vehicles per year
- Co-product: Renewable geothermal energy generated through the extraction process
- Operational goal: A net-zero carbon footprint for the lithium production
Construction and Operational Timeline
With financing secured, the company is now moving forward with building the fully integrated facility, designed to extract lithium and generate geothermal power simultaneously. The industrial-scale production of lithium hydroxide is currently scheduled to commence in 2028.
In a recent technical update, Vulcan Energy reported successful production tests from its first new well at the end of January 2026. These results have provided confirmation of the project’s technical feasibility and development plan.
The commencement of construction solidifies Germany’s ambition to establish a stronger position within the electric mobility value chain, reducing dependence on imports for a key battery metal.
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