Vulcan Energy Resources (ASX:VUL) Advances Lionheart Construction Ahead of 2028 Target

Aditi Sarkar

06 November 2026 02:53 PM AEDT

Vulcan Energy Resources (ASX:VUL) Advances Lionheart Construction Ahead of 2028 Target

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Highlights

• Vulcan progressed construction of Germany’s Lionheart lithium and Geothermal Energy project during the September 2026 quarter.

• Well LSC-3a tested at about 64 standard litres per second against the 40-litre planning assumption.

• The company ended September with EUR 129.4 million in cash plus EUR 80 million in term deposits.

• Lionheart targets 24,000 tonnes of annual lithium hydroxide production and commissioning during calendar year 2028.

Construction rather than project design is now the focus for Vulcan Energy Resources Limited (ASX:VUL). Its Lionheart development in Germany progressed through new well testing, pipeline works and plant preparation in the September 2026 quarter. The lithium and geothermal energy project remains directed towards commissioning in 2028, with financing drawdowns and construction milestones still ahead.

Lionheart Combines Lithium and Geothermal Energy

Vulcan plans to recover lithium from hot underground brine in Germany’s Upper Rhine Valley, using geothermal heat and its VULSORB extraction technology. The brine is intended to be reinjected following lithium extraction and energy use.

Lionheart is designed for annual production of 24,000 tonnes of lithium hydroxide monohydrate over an estimated 30-year operating life. The project also targets approximately 275 GWh of renewable electricity and 560 GWh of heat each year. These are planned capacities, not current production.

Well Testing and Plant Work Advance

The LSC-3a well, drilled in September, produced a test flow rate of approximately 64 standard litres per second, above the planning assumption of about 40. Vulcan obtained the Ilka lithium production licence on 9 September 2026.

Pipeline and power construction began during the quarter, with civil works underway at the 30MW Landau geothermal plant. Design and earthworks also progressed at the Frankfurt-Höchst lithium chemicals facility. The company reported commercial-scale production of VULSORB adsorbent for the first column fill.

Liquidity and Funding Package

At 30 September 2026, Vulcan held EUR 129.4 million in cash and EUR 80.0 million in term deposits, with the deposits accessible after 90 days. Development expenditure was EUR 88.8 million for the quarter and EUR 256.8 million year to date.

The company previously reported a EUR 2.2 billion Lionheart funding package and financial close in May 2026. During the September quarter it received EUR 53.7 million in strategic Equity and EUR 10.7 million in government grants. Its first Debt drawdown is targeted for the first quarter of 2027.

Next Contracts and Commissioning Timetable

The company expects further pipeline and electrical contract awards during the fourth quarter of 2026. Pipeline section one is targeted for completion in the third quarter of 2027, followed by project commissioning in 2028. Funding access remains linked to construction schedules and conditions.

Vulcan also released a pre-feasibility study for a potential follow-on project called Ludwig, but stated that no Investment decision would occur before Lionheart was operating successfully. Construction costs, technology scale-up, permits and the lithium market remain relevant to upcoming milestones.

FAQs

Q: What annual lithium output does Lionheart target?

A: The project is designed to produce 24,000 tonnes of lithium hydroxide monohydrate.

Q: What flow rate did well LSC-3a achieve?

A: Approximately 64 standard litres per second in the reported test.

Q: When is Lionheart commissioning targeted?

A: The company targets commissioning in 2028.

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