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    Vulcan Energy €2.2bn Lionheart lithium project: capex and schedule notes for engineers

    December 4, 2025|

    Reviewed by Joe Ashwell

    Vulcan Energy €2.2bn Lionheart lithium project: capex and schedule notes for engineers

    First reported on Mining Technology – News

    30 Second Briefing

    Vulcan Energy has secured a €2.2bn financing package, including €1.18bn in senior debt from 13 institutions, €204m in German Government grants and €528m from an equity raising at €2.24 per share, enabling a positive FID for phase one of its Lionheart lithium and geothermal project in Germany’s Upper Rhine Valley. Phase one targets 24,000 tonnes per year of battery-grade lithium hydroxide monohydrate from geothermal brines using Vulcan’s VULSORB adsorption-type DLE, plus 275GWh of power and 560GWh of heat annually over a 30-year life. Key infrastructure will include geothermal-lithium production wells, substations, pipelines, a renewable power and heat plant, a lithium extraction plant and a central lithium plant, with commercial output planned from 2028 and lithium offtake fully contracted for the first ten years.

    Technical Brief

    • Execution of phase one works is scheduled to commence within days of FID approval.
    • Construction and commissioning are funded end‑to‑end by the €2.2bn package, covering first-cash-flow stage.
    • Major EPC and supply contracts for phase one are largely executed, with remaining agreements targeted by year-end.
    • Lithium offtake is fully contracted with Europe-focused buyers for the first decade, de‑risking revenue during ramp‑up.

    Our Take

    Within our 140 Mining stories, only a handful of lithium pieces involve this level of multi-source backing from export credit agencies and public lenders, signalling that Lionheart in Germany’s Upper Rhine Valley is being treated more like strategic infrastructure than a conventional mine build.

    The 30‑year operational lifespan combined with 275 GWh of power and 560 GWh of heat for local consumers positions Lionheart as a baseload geothermal-heat supplier, which is likely to ease permitting and social licence constraints compared with greenfield lithium projects in less energy-constrained regions.

    KfW’s 14% stake in Vulcan Energie Ressourcen and the €204m in German Government grants effectively anchor the €2.2bn package, which should lower financing costs and could set a template for EU-backed lithium and battery raw material projects seeking similar blended public–private structures.

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    Prepared by collating external sources, AI-assisted tools, and Geomechanics.io’s proprietary mining database, then reviewed for technical accuracy & edited by our geotechnical team.

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