Vulcan’s €140m Lithium Contract Hinges on Financing—What Could Go Wrong?

Strategic Contract Award Advances Lionheart Project

Vulcan Energy, a pioneering player in sustainable lithium production, has taken a significant stride forward by awarding a €140 million contract to Australian firm JordProxa. This agreement covers the design, fabrication, and delivery of core technology and equipment essential for lithium purification, concentration, and conversion at Vulcan’s flagship Phase One Lionheart Project near Landau, Germany.

The Lionheart Project is positioned to become a cornerstone of Europe’s electric vehicle supply chain, with an annual production target of 24,000 tonnes of lithium hydroxide monohydrate. This volume is sufficient to power around 500,000 electric vehicles, underscoring the project's scale and strategic importance amid the continent’s accelerating shift to clean energy.

Integrated Technology and Modular Delivery

JordProxa’s role encompasses the delivery of advanced Adsorption-type Direct Lithium Extraction (A-DLE) technology at the Lithium Extraction Plant (LEP) in Landau and the Central Lithium Plant (CLP) in Frankfurt. The contract includes modular design and fabrication of core process units, ensuring streamlined installation and commissioning. JordProxa’s expertise in water treatment, crystallisation, and evaporation technologies aligns closely with Vulcan’s commitment to innovation and sustainability.

Importantly, the contract is structured with a substantial fixed-price component and includes performance guarantees backed by bonds and liquidated damages provisions. These contractual safeguards aim to mitigate risks related to delivery delays and underperformance, reflecting Vulcan’s disciplined approach to project execution.

Financing and Future Milestones

The signing of these contracts is a critical condition precedent to Vulcan finalising its financing package, targeted for completion in the fourth quarter of 2025. This milestone will unlock the next phase of construction and development, bringing the project closer to operational status. Vulcan’s CEO, Cris Moreno, highlighted the partnership with JordProxa as a testament to shared values of excellence and sustainability, reinforcing confidence in the project’s delivery.

As Europe seeks to secure a domestic and sustainable lithium supply chain, Vulcan’s Lionheart Project stands out as a pioneering initiative. The integration of renewable energy with lithium extraction from geothermal brines positions the project uniquely in the global lithium landscape, potentially reducing carbon footprints associated with battery raw materials.

Looking Ahead

While the contract award marks a major advance, Vulcan’s journey is contingent on successful financing and execution. The company’s ability to navigate these next steps will be closely watched by investors and industry stakeholders alike, given the growing demand for battery-grade lithium and the strategic imperative of European supply security.