Vulcan Energy Secures €2.2 Billion Financing to Launch Lionheart Lithium Project in Germany
Vulcan Energy Resources announced on Wednesday that it has secured a €2.2-billion financing package, enabling the company to begin construction this week on its Lionheart lithium and renewable energy project in Germany.
The Australia-listed company will supply lithium from the project for 10 years starting in 2028 to major clients, including carmaker Stellantis, LG Corp, Umicore, and Glencore, while also providing renewable energy.
“The board has taken the final investment decision (FID). It’s fully funded, and we will be putting shovels in the ground on Friday,” Executive Chair Francis Wedin told Reuters. He noted strong backing from European and Australian government-supported institutions.
Construction is expected to take approximately two and a half years, with operations scheduled to commence in 2028.
As part of the financing package, Vulcan will raise up to €603 million through an equity placement and entitlement offers at a fixed price of €2.24 per share.
The project is supported by European and German government agencies, alongside a syndicate of 13 financial institutions, including the European Investment Bank, five Export Credit Agencies, and seven commercial banks.
Despite recent lithium price fluctuations, Wedin expressed confidence in the market’s long-term outlook. “There’s been a deficit of new projects receiving FID approval, so at some point that deficit is going to impact supply,” he said.
Approximately 72% of Vulcan’s contracted lithium volumes are secured with floor or fixed pricing for the first decade, providing substantial downside protection, with prices well above current spot levels.
In July, the company received €104 million in German government grants to produce clean lithium, supporting Berlin’s strategy to expand electric vehicle production and reduce dependence on imported raw materials.
Trading in Vulcan shares was halted on Wednesday. The stock has gained 14.6% so far this year.
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