Vulcan Energy Mobilises V20 Rig to Boost Europe's Lithium Supply

• Mobilisation of V20 electric drilling rig to Schleidberg well site underway
• Phase One targets 24,000 tonnes per annum lithium hydroxide production
• Project integrates renewable energy with lithium extraction from geothermal brines
• Vercana to deploy second rig, V10, post-financing closure
• Focus on safety, operational excellence, and community engagement

Milestone Mobilisation of V20 Rig

Vulcan Energy Resources (ASX: VUL) has officially commenced the mobilisation of its V20 drilling rig to the Schleidberg well site near Landau, Germany. This marks the start of execution works for the company’s integrated Phase One Lionheart Project, which aims to produce lithium hydroxide monohydrate for electric vehicle batteries while harnessing geothermal energy for renewable heating and power.

The V20 rig, a 2500 horsepower electric drilling unit with a 550-tonne hook load capacity and a 7500 psi fluid pressure system, is being mobilised by Vulcan’s in-house geothermal well execution company, Vercana. The rig’s mobilisation follows the completion of critical infrastructure including well pad construction, access roads, and crew camp establishment, underscoring Vulcan’s commitment to operational readiness and community engagement.

Strategic Importance of Phase One

The Lionheart Project targets an annual production of approximately 24,000 tonnes of lithium hydroxide monohydrate, extracted from lithium-rich geothermal brines in the Upper Rhine Valley Brine Field. This resource is the largest lithium and geothermal asset in Europe, positioning Vulcan as a key player in the continent’s push to reduce reliance on imported raw materials for battery production.

By integrating lithium extraction with renewable geothermal energy, Vulcan aims to establish a carbon-neutral supply chain that supports Europe’s energy transition and electric vehicle market growth. The company’s proprietary VULSORB® technology further enhances its ability to produce battery-grade lithium sustainably and cost-effectively.

Operational Outlook and Next Steps

Following the rig’s mobilisation, Vulcan will undertake assembly, commissioning, and technical testing to ensure safe and efficient operations. Drilling is scheduled to commence in February 2025, contingent on successful rig commissioning. Additionally, Vercana’s second electric rig, V10, is planned for mobilisation to the Trappelberg well site after Vulcan’s Phase One financing closes, indicating a ramp-up in drilling activity.

Managing Director and CEO Cris Moreno emphasised the significance of this milestone, highlighting the company’s focus on safety, execution quality, and collaboration with stakeholders. Vulcan’s proactive engagement with local communities aims to minimise disruption during increased transport and drilling operations.

Broader Market Implications

As lithium demand surges globally, Vulcan’s progress in developing a European-based, sustainable lithium supply chain could alleviate supply chain risks and support the continent’s electric vehicle ambitions. The company’s approach of combining geothermal energy with lithium extraction offers a unique value proposition in the clean energy and battery materials sectors.

While the project advances, uncertainties remain around final production outcomes and market dynamics. Nonetheless, Vulcan’s strategic positioning and technological capabilities make it a company to watch as Europe intensifies its energy transition efforts.

Bottom Line?

Vulcan’s rig mobilisation signals a pivotal step toward Europe's sustainable lithium future, with drilling soon to reveal the project's true potential.

Questions in the middle?

• Will Vulcan meet its targeted 24,000 tonnes per annum lithium hydroxide production on schedule?
• How will local communities respond to increased drilling and transport activities?
• What impact will Phase One’s success have on Vulcan’s plans for Phase Two and broader European lithium supply?