Vulcan’s Mannheim Lithium Resource Jumps to 3,225kt LCE with Maiden Geothermal Estimate

Resource Expansion and New Geothermal Insights

Vulcan Energy has announced a substantial update to its resource base in the Mannheim licence area within Germany’s Upper Rhine Valley Brine Field (URVBF). The lithium brine resource estimate has surged by 76%, now standing at 3,225 kilotonnes of lithium carbonate equivalent (LCE) at an average lithium concentration of 155 mg/L. This update reflects enhanced geological modelling supported by a new 3D seismic survey, which has improved confidence in the subsurface fault and reservoir structures.

Alongside this, Vulcan has reported its maiden geothermal energy resource estimate for Mannheim, quantifying a large-scale in-place resource of 2,848 petajoules (PJ) indicated and 10,539 PJ inferred. Of these, 171 PJ (indicated) and 377 PJ (inferred) are considered recoverable, underscoring the dual potential of the site for both lithium extraction and renewable heat production.

Strategic Development and Market Positioning

The Mannheim licence is positioned as a future phase of Vulcan’s integrated lithium and geothermal energy production, complementing its Phase One Lionheart development located about 40 kilometres southwest. A scoping study is currently underway to explore the feasibility of expanding production capacity, including the potential enlargement of the lithium hydroxide monohydrate (LHM) facility at Industrie-Park Höchst near Frankfurt.

Vulcan plans to supply baseload geothermal heat from Mannheim to the district heating network operated by MVV Energie AG, a leading German energy company. Negotiations are ongoing to revise the existing heat offtake agreement to reflect updated project timelines and market conditions. This integration of lithium extraction with renewable energy generation aligns with Vulcan’s vision of a carbon-neutral supply chain for European electric vehicle batteries.

Regulatory Recognition and Future Outlook

Notably, Vulcan’s Phase One project has been designated as a Strategic Project under the European Commission’s Critical Raw Materials Act (CRMA), highlighting its importance in securing sustainable lithium supplies within Europe. This regulatory recognition enhances the project’s profile and may facilitate access to funding and permits.

While the Mannheim project remains at an early stage, with no in-field wells drilled yet, the company’s extensive geological and geophysical data, combined with pilot plant lithium extraction results, provide a solid foundation for future development. Vulcan is targeting to finalize financing and commence construction of Phase One in the second half of 2025, with Mannheim envisaged as a key expansion phase thereafter.

Risks and Considerations

The announcement also outlines various risks, including geological uncertainties due to the absence of direct well data within Mannheim, technical challenges related to drilling and scaling, and economic risks tied to market conditions and lithium product specifications. Environmental and regulatory risks, such as induced seismicity and permitting changes, are acknowledged but are mitigated by Vulcan’s experience and strategic positioning.

Overall, the resource upgrade and geothermal estimate reinforce Vulcan Energy’s position as a pioneering player in sustainable lithium production coupled with renewable geothermal energy, addressing critical raw material needs for Europe’s electric vehicle industry.