Highlights

  • Vulcan began mobilising its V10 drilling rig to the Trappelberg well site in November.
  • Its in-house operator Vercana will deploy V10 alongside the existing V20 rig.
  • The Lionheart field plan targets 28 wells, with seven production or reinjection wells already installed.
  • First production is targeted for H2 2028, subject to construction and commissioning.

Vulcan Energy Resources Limited (ASX:VUL) is developing a combined lithium and Geothermal Energy Business in Germany's Upper Rhine Valley. Its Lionheart project is designed to extract lithium from geothermal brine while supplying renewable heat and electricity. In a 10 November 2026 update, the company announced the start of mobilisation of a second heavy-duty drilling rig, extending its capacity to work across more than one Lionheart well location.

Two Rigs and the Lionheart Field Plan

Vulcan Energy Resources (ASX:VUL) said its refurbished V10 rig was being mobilised to Trappelberg, the project's fourth well site. The rig is operated by Vercana, Vulcan's in-house drilling business. V10 is designed for deep wells and has 2,000 horsepower, a 500-tonne hook-load capacity and fluid-pressure systems rated to 7,500 psi. These are equipment specifications rather than evidence of completed drilling at Trappelberg.

The V10 unit is intended to work alongside the existing V20 rig. Seven production or reinjection wells were already in place at Lionheart at the time of the announcement. The company's field development plan targets 28 wells overall. Running two rigs gives the development team a potential scheduling advantage, but the actual pace will depend on site readiness, drilling conditions and operational performance.

Lithium and Geothermal Production Targets

Lionheart is an integrated development with a stated target capacity of 24,000 tonnes a year of lithium hydroxide monohydrate. Vulcan Energy Resources (ASX:VUL) also targets annual coproduct generation of approximately 275 gigawatt-hours of renewable power and 560 gigawatt-hours of heat for local users. The company's project-life estimate is approximately 30 years. These quantities are development targets, not production achieved during 2026.

The project is under construction, and the company's November statement retained a target of first production in the second half of 2028. Vulcan has entered take-or-pay lithium offtake arrangements, but commercial deliveries depend on completion of the wells and Downstream facilities. Its existing geothermal operations at Insheim and Landau should not be confused with the future Lionheart lithium production system.

Drilling Investment and Project Control

Vulcan Energy Resources (ASX:VUL) reported investing approximately EUR 51 million, equivalent in its disclosure to around AUD 82 million, in two drilling rigs. Bringing the well-delivery capability in-house is intended to reduce reliance on external rig availability and improve control over field schedules. It is an operational investment rather than proof that total Capital spending or project risk has been eliminated.

The V10 deployment adds a significant piece of equipment to the construction programme, but rig ownership alone does not establish output. The team must still complete site mobilisation, execute wells, manage the reservoir and coordinate connections to lithium and energy processing infrastructure. Each stage has technical dependencies that can affect completion dates.

Milestones and Remaining Constraints

For Vulcan Energy Resources (ASX:VUL), the next measurable progress will include commissioning V10 for drilling, the number of completed wells and updates to construction and plant readiness. The company has linked the second rig to the ability to advance subsurface works in parallel with other Lionheart activities. The November release did not state that all planned wells were drilled or commissioned.

Construction sequencing, drilling productivity, financing needs, regulatory obligations and lithium processing performance remain material uncertainties. The announced production timeline is therefore a company objective rather than a guaranteed start date. Measurable well delivery and plant commissioning will provide clearer evidence of execution than equipment mobilisation by itself.

Key Insights

Vulcan's second in-house rig may increase its practical drilling capacity at Lionheart, where seven wells are already in place against a 28-well development plan. The transition from mobilisation to completed wells, integrated plant readiness and the H2 2028 first-production target remains subject to execution risk.