Highlights

  • Vulcan Energy has signed EPCM agreements with the Sedgman–HOCHTIEF joint venture for the Lithium Extraction Plant and Central Lithium Plant under Phase One Lionheart.
  • The company has secured a financing package of approximately €2,200 million (around £1.87 billion) to fully fund the construction and development of Phase One.
  • A Final Investment Decision has been approved, with construction planned to begin within days.

Vulcan Energy Resources (ASX:VUL) has progressed its Phase One Lionheart Project through the execution of engineering and construction agreements and the completion of a comprehensive financing package. These developments support the commencement of construction and establish a clear pathway toward lithium hydroxide monohydrate and renewable energy production in Germany’s Upper Rhine Valley.

EPCM Contracts Awarded for Lionheart Facilities

Vulcan Energy has signed agreements with the Sedgman and HOCHTIEF joint venture (SHJV) for engineering, procurement and construction management (EPCM) services for its Phase One Lionheart Project. The agreements cover both the Lithium Extraction Plant (LEP) and the Central Lithium Plant (CLP), with each facility receiving dedicated EPCM oversight under the joint venture arrangement.

The total estimated value of the EPCM contracts is approximately €72 million. The LEP will be developed at the integrated geothermal site in Landau, Rhineland-Palatinate, while the CLP will be constructed at Industrial Park Höchst in Hesse. SHJV’s scope includes project management, detailed engineering, procurement, expediting, quality management, construction oversight, site coordination and commissioning support. Integration of Vulcan’s proprietary technology systems forms part of the delivery responsibilities.

Consolidating both facilities under a single EPCM framework provides centralised accountability across the project and enables consistent adherence to project standards, ESG parameters and permitting requirements.

Financing Package Secured for Development

Vulcan has secured a €2,200 million financing package, equivalent to roughly £1.87 billion, covering construction, commissioning and early operational stages of Phase One Lionheart. This includes €1.4 billion in strategic funding support from German, European and international government-backed institutions, alongside further contributions from commercial banks and strategic corporate investors.

The Board has formally approved a Final Investment Decision for Phase One, with construction scheduled to start within days. The financing package incorporates senior debt arrangements totalling €1,185 million, €204 million in German government grants and €150 million in equity investment from the KfW Raw Materials Fund. A consortium including HOCHTIEF, Siemens Financial Services and Demeter will invest €133 million for a minority interest in the project entity.

Vulcan will also receive €528 million from an underwritten equity raising at €2.24 per share. Institutional and retail entitlement offers form part of this capital structure, with partially underwritten elements ensuring funding certainty.

Phase One Development Plan

Phase One Lionheart will comprise geothermal-lithium brine wells, infrastructure, a renewable power and heat facility, the Lithium Extraction Plant and the Central Lithium Plant. The project targets annual output of 24,000 tonnes of lithium hydroxide monohydrate, supporting battery capacity for approximately 500,000 electric vehicles. Renewable energy output is projected at 275 GWh of power and 560 GWh of heat each year, with production scheduled to begin in 2028 following an estimated 2.5-year construction period.