Key Highlights

  • Vulcan Energy has been granted a second lithium production licence, designated Ilka, for its Lionheart Project in the Upper Rhine Valley Brine Field.
  • The licence, granted by the Mining Authority of Rhineland-Palatinate, is valid for six years until 9 September 2032.
  • Lionheart is targeting production capacity of 24,000 tonnes of lithium hydroxide monohydrate per annum, alongside 275 GWh of renewable power and 560 GWh of heat.
  • VUL shares declined 5.80% to A$2.36 on the day of the announcement.

Second Production Licence Granted

Vulcan Energy (ASX:VUL, FSE:VUL) announced the grant of its second lithium production licence for its flagship Lionheart Project, which is currently under construction. The licence, designated Ilka, was issued by the Mining Authority of the German state of Rhineland-Palatinate and follows the company's earlier lithium production licence, known as LiThermEx, granted in relation to the Upper Rhine Valley Brine Field in March 2026.

The Ilka licence covers Vulcan's Landau geothermal production permit area, which the company notes is already producing renewable heat. The licence is valid for six years, until 9 September 2032, following which Vulcan intends to combine the two lithium production licences into a single licence of at least 30 years' duration, consistent with the Lionheart Field Development Plan.

Lionheart Project Scope

Lionheart represents Vulcan's first phase of commercial lithium production and involves the construction of an integrated lithium and Geothermal Energy project. The project is targeting a production capacity of 24,000 tonnes of lithium hydroxide monohydrate per annum, described by the company as sufficient for approximately 500,000 electric vehicle batteries annually. The project is also designed to produce a co-product of 275 GWh of renewable power and 560 GWh of heat per annum for local consumers, over an estimated project life of 30 years.

Vulcan Managing Director and CEO Cris Moreno said the second lithium production licence represents an important achievement for Lionheart and validates the company's progress toward becoming a producer of low-cost lithium in Europe, adding that construction remains on track with the company targeting first production in 2028.

Construction and Development Timeline

The company stated that satisfaction of this licensing milestone supports its 2028 Lionheart production target, which it says remains on track, with construction and field development progressing according to schedule. The grant of the Ilka licence follows a series of earlier milestones referenced by the company, including production test results from a new Lionheart well announced in January 2026 and field development updates issued in late 2025.

Conclusion

The grant of a second lithium production licence for the Lionheart Project adds to the regulatory approvals Vulcan Energy has secured in the Upper Rhine Valley Brine Field as it works toward first lithium production in 2028. With the Ilka licence covering an area already generating renewable heat and construction reported to be progressing on schedule, the milestone represents an incremental step in the company's broader development pathway toward commercial-scale lithium and geothermal energy production in Germany.