Production Test Delays Highlight Challenges Despite Strong Drilling Results

Robust Drilling Advances Lionheart Project

Vulcan Energy Resources has delivered a promising update on its Phase One Lionheart Project in the Upper Rhine Valley Brine Field, Germany. The company’s LSC-1 vertical well and LSC-1a sidetrack drilling campaigns have not only met but exceeded expectations, showcasing strong operational execution by Vulcan’s wholly owned drilling subsidiary, Vercana. Completed ahead of schedule and on budget, these wells form a critical part of Vulcan’s strategy to develop Europe’s largest lithium resource sustainably.

Lithium Grades and Reservoir Quality Confirmed

Key to the project’s viability, the lithium-in-brine concentrations from the LSC-1a sidetrack were measured at approximately 183 mg/L after correcting for minor drilling fluid dilution. This aligns closely with Vulcan’s existing resource estimates and previous production wells in the Phase One area, reinforcing the continuity and quality of the lithium-bearing brine. Additionally, geological logging revealed the Buntsandstein reservoir to be around 440 meters thick; significantly thicker than the pre-drill estimate of 380 meters; offering a larger productive interval than anticipated.

Enhanced Permeability Supports Production Potential

Beyond thickness, the reservoir’s matrix permeability was found to be higher than previously modeled, with two distinct intervals exhibiting permeability greater than 100 millidarcies. This bodes well for both lithium extraction and geothermal heat recovery, as it suggests improved fluid flow and reservoir connectivity. The drilling also intersected the predicted Insheim Fault with remarkable precision, validating Vulcan’s seismic and structural models and reducing geological uncertainty.

Challenges and Next Steps

While the open-hole LSC-1a sidetrack provided valuable data, wellbore instability in the overlying formations prevented completion of a planned production test. To address this, Vulcan plans to drill a cased sidetrack from the LSC-1 well, designed to withstand formation conditions and enable a full production test of the Buntsandstein reservoir. This next phase will be crucial to confirm production performance and further de-risk the project.

Strategic Implications for Sustainable Lithium Supply

With a targeted production capacity of 24,000 tonnes of lithium hydroxide monohydrate per annum; enough to supply around 500,000 electric vehicles; the Lionheart Project stands as a cornerstone in Europe’s transition to clean energy. Vulcan’s integrated approach, combining lithium extraction with renewable geothermal heat, positions it uniquely in the market. The recent drilling success and data validation underscore Vulcan’s leadership in delivering low-carbon lithium critical for European battery supply chains.