Australian company Vulcan Energy Resources has secured total financing of around 2.2 billion euros. These funds will entirely finance the first phase of the Lionheart project in the Upper Rhine Graben. The project will produce lithium hydroxide monohydrate (LHM) from geothermal brine, as well as generate electricity and heat from renewable energy sources.
647,000 tons of LHM in three decades
During the initial phase, the company plans to produce up to 24,000 tons of LHM annually from geothermal brine in the Upper Rhine Graben. The rate of extraction is expected to be around 950 liters of brine per second. Vulcan Energy expects to produce a total of around 647,000 tons of LHM over the projectʼs intended 30-year operating period. Additionally, the project will generate up to 275 gigawatt-hours of electricity and up to 560 gigawatt-hours of heat annually. Geothermal energy production is an integral part of the concept which aims to achieve climate-neutral lithium production. The brine is processed from a license area covering more than 2,200 square kilometers.
150 million euros from federal raw materials fund
Financing consists of several components. A consortium of 13 financial institutions – including the European Investment Bank as well as export credit agencies from Australia, Canada, France, Italy, and Denmark, as well as seven commercial banks – is providing 1.185 billion euros in debt financing. Money from the German governmentʼs raw materials fund is also invested in the project. According to the Federal Ministry for Economic Affairs and Energy, the government is providing up to 150 million euros. Other investors include Siemens, Hochtief, and Demeter. Vulcan Energy is supplementing the financing with a capital increase.
Sources:
https://v-er.eu/blog/commencement-of-v-li0n-qualification-process-with-offtake-partners/
https://www.bundeswirtschaftsministerium.de/Redaktion/DE/Pressemitteilungen/2025/12/20251203-startschuss-fuer-erstes-projekt-des-rohstofffonds-australien-und-deutschland-begruessen-investitionen.html
