Key Highlights

  • Vulcan has begun mobilising its second heavy-duty drill rig, V10, to the Trappelberg well site, its fourth Lionheart well location.
  • Seven production and re-injection wells are already in place, and the Lionheart program targets 28 wells.
  • The company has invested approximately €51 million, or about A$82 million, in its two drill rigs.
  • Lionheart is under construction with take-or-pay offtake contracts and targets first production in the second half of 2028.

Vulcan Energy Limited (ASX:VUL) has commenced mobilising its second land drill rig, designated V10, to Trappelberg, the fourth well site for its Lionheart project in Germany. The rig is operated by Vercana, the company's in-house drilling business, which oversees well delivery for the project. The update, dated 10 November 2026, comes as Lionheart moves deeper into construction and as the company seeks to accelerate its subsurface work.

The Equipment and Its Role in the Drilling Program

V10 is a heavy-duty rig with 2,000 horsepower, a hook load capacity of 500 tonnes and 7,500 psi fluid pressure systems, designed for deep wells. The rig will join V20, which is already in operation. With two rigs operating, the company says it can run subsurface activity at multiple sites in parallel rather than sequentially, which should support the project's field development plan.

Vulcan has invested approximately €51 million, or about A$82 million, in its two rigs. The company's rationale is to control the timing of its field development and reduce reliance on third-party drilling providers. Owning the equipment also allows the company to plan its schedule internally, although it adds to the Capital committed to the project before Revenue begins.

Lionheart Project Scope and Development Status

Lionheart is described as an integrated lithium and renewable energy project in Germany's Upper Rhine Valley. The project targets production of 24,000 tonnes per year of lithium hydroxide monohydrate, enough for roughly 500,000 electric vehicle batteries annually. It also produces co-products of 275 gigawatt hours of renewable power and 560 gigawatt hours of heat for local consumers, over an estimated 30-year project life.

Seven production and re-injection wells are already in place. The company's targeted program includes 28 wells, and the addition of a second dedicated rig is intended to accelerate well delivery and support geothermal lithium brine production targets. The company notes that wells at Insheim and Landau are already in production and underpin its existing geothermal renewable energy operations.

Offtake, Timing and Financial Commitments

Lionheart is under construction with take-or-pay lithium offtake contracts in place. The company is targeting first production in the second half of 2028. The production target and the associated financial forecasts are based on earlier engineering studies and an independent expert report, and the company says its material assumptions remain unchanged.

The capital outlay for drill rigs is one part of a wider construction program. The company has indicated that execution is progressing on time and on budget, although the scale of the remaining work, including well completion, surface facilities and processing, will determine whether that position holds as activity increases.

Risks, Dependencies and Open Questions

Lithium brine projects depend on subsurface conditions that cannot be fully known until wells are drilled, tested and connected. Productivity, brine chemistry and reinjection performance will influence the rate at which production targets are achieved. The company's forecasts are subject to Commodity prices, exchange rates and the successful execution of construction, and the announcement itself cautions that actual outcomes may differ materially.

The company also carries the risk that a faster drilling schedule places greater demands on capital, crews and safety management. Ownership of two rigs reduces dependence on external contractors, but it also concentrates operational responsibility within the company's own drilling business.

Final Word

The mobilisation of V10 adds drilling capacity at Lionheart as the project moves from design towards production, and it gives Vulcan greater control over the pace of its well program. The 2028 production timetable depends on the remaining wells being delivered and the surface facilities being completed. Progress in the coming months will be measured by the number of wells completed at Trappelberg and the rate at which the 28-well program advances.