Vulcan Energy (ASX:VUL) PFS Shows Improved Economics for Project Ludwig Lithium Expansion

Sonal Goyal

03 September 2026 10:22 AM AEST

Vulcan Energy (ASX:VUL) PFS Shows Improved Economics for Project Ludwig Lithium Expansion

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Key Highlights

Vulcan Energy (ASX:VUL, FSE:VUL) has completed a Preliminary Feasibility Study for Project Ludwig, its proposed second phase of lithium and geothermal production in Germany's Upper Rhine Valley Brine Field.
Project Ludwig shows a pre-tax NPV8 of €2.6 billion and IRR of 25.0%, and a post-tax NPV8 of €1.7 billion and IRR of 20.2%, over a planned 30-year operating life.
Capital intensity has been reduced by 15% relative to Project Lionheart, with total Capital expenditure of €1.26 billion.
Project Ludwig's Indicated Mineral Resources increased from 655kt to 1,251kt lithium carbonate equivalent (+91%), while Inferred Mineral Resources increased from 2,128kt to 2,230kt (+5%).

Vulcan Energy (ASX:VUL) (FSE:VUL) announced on 3 September 2026 the completion of its Preliminary Feasibility Study for Project Ludwig, its proposed second phase of lithium and Geothermal Energy production. Project Ludwig is planned as an integrated lithium chemical and renewable heat project in the Ludwigshafen region of the Upper Rhine Valley Brine Field in Germany, located approximately 60km north of the company's first phase, Project Lionheart. The company said Project Ludwig will build on the learnings and experience from Lionheart to drive improved capital efficiency, leveraging the same regional brine system, proprietary extraction platform, in-house drilling capability, permitting experience and delivery organisation.

Project Economics

The PFS outlines a pre-tax net present value (NPV8) of €2.6 billion and an internal rate of return of 25.0% for Project Ludwig, with a post-tax NPV8 of €1.7 billion and an IRR of 20.2%, based on a 30-year planned operating life. Total Capital Expenditure is estimated at €1.26 billion, representing a 15% reduction in capital intensity relative to Lionheart, which the company attributed to lessons learned from Lionheart, increased project Maturity and simplification of the development concept. Operating costs are estimated at €4,101 per tonne of lithium carbonate equivalent, which the company described as being in the lowest industry quartile, driven by low-cost lithium production from brine and integration of heat generation. Base case production is set at 21,100 tonnes per annum of battery-grade lithium carbonate, complementing lithium hydroxide production from Lionheart, alongside co-production of 3,125 gigawatt-hours per annum of renewable heat for internal process Demand and external sales.

Resource Growth

The PFS is accompanied by increases to Project Ludwig's resource base. Indicated Mineral Resources increased from 655kt lithium carbonate equivalent to 1,251kt, a rise of 91%, at 155mg/l lithium, while Inferred Mineral Resources increased from 2,128kt to 2,230kt, a rise of 5%, at the same grade. The company also reported a maiden Geothermal Resources estimate for Project Ludwig of 193 petajoules in the Indicated classification and 295 petajoules in the Inferred classification.

Development Pathway

Vulcan said the PFS demonstrates that Lionheart is a repeatable development platform capable of delivering improved returns and lower capital intensity across future phases. The company has commenced an asset-level financing strategy intended to advance Project Ludwig toward a Final Investment Decision following the successful start-up of Project Lionheart, with strategic partner selection processes currently under way.

Conclusion

The Project Ludwig PFS outlines a second lithium and geothermal development phase in the Upper Rhine Valley Brine Field with improved capital efficiency relative to Project Lionheart, alongside increases to both the Indicated and Inferred Mineral Resource base. With an asset-level financing strategy under way and strategic partner selection in progress, the project's advancement toward a Final Investment Decision remains linked to the successful start-up of Lionheart.

FAQs

Q: What has Vulcan Energy (ASX:VUL) announced?

A:The company has completed a Preliminary Feasibility Study for Project Ludwig, its proposed second phase of lithium and geothermal production in Germany.

Q: How does Project Ludwig's capital intensity compare with Project Lionheart?

A:Capital intensity is reduced by 15% relative to Lionheart, with total capital expenditure estimated at €1.26 billion.

Q: What are the project's estimated returns?

A:The PFS outlines a pre-tax NPV8 of €2.6 billion and 25.0% IRR, and a post-tax NPV8 of €1.7 billion and 20.2% IRR, over a 30-year operating life.

Q: How have Project Ludwig's Mineral Resources changed?

A:Indicated Mineral Resources increased 91% to 1,251kt lithium carbonate equivalent, while Inferred Mineral Resources increased 5% to 2,230kt.

Q: What is the next step for Project Ludwig?

A:Vulcan has commenced an asset-level financing strategy and strategic partner selection process to advance the project toward a Final Investment Decision following Lionheart's start-up.

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