Vulcan Energy Secures €72M EPCM Contract to Power Europe’s Carbon-Neutral Lithium Future
Vulcan Energy has awarded a €72 million EPCM contract to a Sedgman and HOCHTIEF joint venture for its Phase One Lionheart Project, aiming to produce 24,000 tonnes of lithium hydroxide annually to fuel half a million electric vehicles.
- €72 million EPCM contract awarded to Sedgman and HOCHTIEF joint venture
- Phase One Lionheart Project targets 24,000 tonnes lithium hydroxide per year
- Integrated upstream and downstream plants located in Germany
- Contract covers full project management, engineering, procurement, and construction
- Supports Europe’s first carbon-neutral lithium production at scale
Strategic EPCM Partnership for Lionheart
Vulcan Energy Resources has taken a significant step forward in its mission to deliver Europe’s first carbon-neutral lithium production by awarding a €72 million engineering, procurement, and construction management (EPCM) contract to a joint venture between Sedgman and HOCHTIEF. This partnership will oversee the full project management and execution of the Phase One Lionheart Project, a flagship initiative designed to produce 24,000 tonnes of lithium hydroxide monohydrate annually; enough to supply batteries for approximately 500,000 electric vehicles each year.
The contract consolidates the management of both the Lithium Extraction Plant (LEP) in Landau, Rhineland-Palatinate, and the Central Lithium Plant (CLP) at Industrial Park Höchst in Hesse. By uniting these upstream and downstream facilities under a single EPCM umbrella, Vulcan aims to streamline accountability, enhance interface management with proprietary technology suppliers, and ensure consistent adherence to project standards, environmental, social, and governance (ESG) requirements, and permitting obligations.
Leveraging Expertise for a Complex Project
The joint venture combines Sedgman’s extensive experience in minerals processing and CIMIC Group’s global contracting prowess with HOCHTIEF’s strong European infrastructure footprint and growing presence in sustainable energy markets. This blend of expertise is critical for managing the technical complexity and scale of the Lionheart Project, which integrates geothermal energy with lithium extraction to create a low-carbon supply chain for battery-grade lithium.
Vulcan’s CEO, Cris Moreno, highlighted the importance of this collaboration, noting that early validation work conducted throughout 2024 and 2025 has maintained project momentum and optimized execution timelines. Both Sedgman and HOCHTIEF bring proven track records in delivering major projects, which Vulcan expects will be instrumental in meeting its ambitious production targets.
Contract Scope and Future Outlook
The EPCM contract encompasses detailed engineering, procurement, construction management, site coordination, quality assurance, inspections, certifications, and commissioning support. Notably, the joint venture will integrate Vulcan’s proprietary technology packages into the plant designs, ensuring the project’s innovative approach to sustainable lithium production is fully realized.
While the current contract value stands at approximately €72 million, Vulcan has indicated this figure may increase following full scoping and financing completion. The contract includes performance incentives and standard protections such as warranties and liquidated damages, reflecting the high stakes involved in delivering a pioneering clean energy project.
As Europe intensifies its push toward electrification and decarbonization, Vulcan’s Lionheart Project represents a critical domestic source of sustainable lithium, reducing reliance on imports and supporting the continent’s electric vehicle battery supply chain. The successful execution of this EPCM contract will be a key milestone in that journey.
Bottom Line?
With EPCM contracts now secured, Vulcan Energy is poised to accelerate Europe’s transition to carbon-neutral lithium production, next comes financing and detailed engineering execution.
Questions in the middle?
- How will Vulcan manage potential cost escalations as the EPCM contract scope expands?
- What are the key risks in integrating proprietary technologies within the EPCM framework?
- When can investors expect updates on financing completion and project commissioning milestones?
