Vulcan Energy (ASX:VUL) Secures Permit for Central Lithium Plant as Financing Advances

Sonal Goyal

10 September 2025 01:14 PM AEST

Vulcan Energy (ASX:VUL) Secures Permit for Central Lithium Plant as Financing Advances

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Highlights

Vulcan Energy has received the permit to build and operate its Central Lithium Plant (CLP) in Frankfurt, Germany.

The CLP will deliver up to 24,000 tonnes of battery-quality lithium hydroxide monohydrate (LHM) annually during Phase One.

Amendments have been made to offtake agreements with partners Umicore, LG Energy Solution, and Stellantis as part of financing requirements.

Vulcan Energy (ASX:VUL) (FSE:VUL) has been granted approval to construct and operate its Central Lithium Plant (CLP) at Industrial Park Höchst in Frankfurt, Germany. The CLP forms a central component of the company’s Phase One Lionheart Project, designed to combine the production of carbon-neutral lithium with renewable energy from geothermal brine.

The plant will process lithium chloride (LiCl) from Vulcan’s upstream Geothermal and Lithium Plant (G-LEP) in Landau into battery-quality lithium hydroxide monohydrate (LHM).

The official handover of the permit was carried out by the Darmstadt Regional Council district president, Prof. Dr Jan Hilligardt, at Vulcan’s Central Lithium Electrolysis Optimisation Plant (CLEOP) in Frankfurt. Vulcan representatives in attendance included Managing Director and CEO, Cris Moreno, while Industrial Park Höchst Managing Director, Dr Joachim Kreysing, also participated in the handover.

Production Capacity and Expansion Potential

During Phase One, the CLP will have an annual production capacity of up to 24,000 tonnes of LHM, sufficient for approximately 500,000 electric vehicle batteries. The company has highlighted that the facility is designed for expansion in a second phase, where production and storage units could be increased.

Since January 2025, Vulcan has been producing sustainable, domestically sourced LHM at CLEOP in the same industrial park. This has supported product qualification and optimisation ahead of the commercial ramp-up of the CLP.

Financing and Government Grants

Vulcan previously secured approximately €104 million (~AUD 186 million) in grants from the German federal and state governments under the Temporary Crisis and Transition Framework (TCTF). These grants aim to promote domestic lithium production and reduce reliance on imported raw materials for European battery and automotive industries.

The deadline to complete the remaining financing requirements has now been extended to 31 December 2025, in line with Vulcan’s plan to finalise Phase One funding during the second half of the year. The extension aligns with the company’s financing model and lender requirements.

Updates on Offtake Agreements

As part of the financing process, Vulcan has revised its offtake agreements with key partners, including Umicore, LG Energy Solution, and Stellantis. The updates cover terms, volumes, and scheduled commercial operating dates to ensure consistency with the revised project timeline.

Phase One offtake volumes are now spread more evenly across the partners:

LG Energy Solution: 31,000 tonnes over six years.
Umicore: 23,000 tonnes over six years.
Stellantis: 128,000 tonnes over ten years.

Additionally, Vulcan is negotiating a final offtake agreement for Phase One, targeted for completion before debt signing to meet its financing schedule.

Share Price Movement

On 10 September, Vulcan Energy’s shares were trading 3.74% lower at AUD 3.74 during the session.

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