Vulcan Energy has appointed ABB as the main electrical contractor for its flagship Lionheart lithium project, marking a significant step towards financing and construction. The €46 million fixed-price contract covers comprehensive electrical infrastructure for a facility set to produce enough lithium for 500,000 electric vehicles annually.
- ABB appointed as Main Electrical Contractor for Lionheart Project
- €46 million fixed-price contract for electrical design and equipment supply
- Project aims to produce 24,000 tonnes of lithium hydroxide annually
- Contract is a condition precedent to Vulcan’s project financing in Q4 2025
- Lionheart integrates renewable energy with lithium extraction in Germany
Strategic Partnership with ABB
Vulcan Energy Resources has formalised its collaboration with global technology leader ABB, appointing the company as the Main Electrical Contractor (MEC) for the Phase One Lionheart Project. This partnership follows a Memorandum of Understanding signed in April 2024 and represents a critical milestone in advancing Vulcan’s ambition to establish Europe’s largest lithium production facility.
ABB’s role encompasses the design, engineering, manufacture, testing, and delivery of the electrical infrastructure across the lithium extraction and processing plants. The contract, valued at approximately €46 million on a fixed-price basis, covers high, medium, and low-voltage power distribution systems, variable frequency drives, transformers, and protection equipment. These systems will underpin the entire operation, ensuring reliable and safe power supply from the 110 kV grid interface down to individual process units.
Project Scale and Impact
The Lionheart Project is designed to produce 24,000 tonnes of lithium hydroxide monohydrate annually, sufficient to supply batteries for around 500,000 electric vehicles each year. Located in Germany’s Upper Rhine Valley, the project integrates renewable energy generation, producing 275 GWh of power and 560 GWh of heat, aligning with Vulcan’s commitment to carbon-neutral lithium production.
ABB’s involvement brings not only technical expertise but also a suite of integrated automation and digital solutions aimed at optimising operational efficiency and sustainability. The partnership is expected to accelerate project delivery timelines and improve cost performance, vital factors as Vulcan targets finalising project financing and additional agreements by the end of 2025.
Contractual Safeguards and Future Outlook
The contract includes performance incentives, warranties, and liquidated damages provisions to mitigate risks and ensure timely delivery. ABB is also responsible for maintaining appropriate insurances and providing indemnities related to legal compliance and property damage. These measures reflect Vulcan’s cautious approach to managing project execution risks.
Vulcan’s CEO Cris Moreno highlighted ABB’s proven track record in large-scale infrastructure projects across energy and chemicals sectors, underscoring the strategic value of this partnership. Meanwhile, ABB’s Battery Materials Manager Staffan Sodergard emphasised the project’s significance for Europe’s energy transition and local battery manufacturing industry.
As Vulcan moves closer to securing financing and commencing construction, the Lionheart Project stands as a beacon for sustainable lithium supply in Europe, potentially reshaping the continent’s electric vehicle battery ecosystem.
Bottom Line?
With ABB onboard, Vulcan Energy’s Lionheart Project is poised to electrify Europe’s lithium supply chain; next up, securing final financing.
Questions in the middle?
- Will Vulcan secure the targeted project financing by Q4 2025 to commence construction?
- How might scope changes during engineering affect the fixed-price contract value with ABB?
- What are the potential operational risks ABB’s systems might face in integrating renewable energy with lithium extraction?