Vulcan Energy Seals €40m Siemens Automation Deal for Lionheart Project

Final Major Supply Contract Secured for Lionheart

Vulcan Energy (ASX:VUL) has wrapped up the last of its major supply agreements for the Lionheart Project, signing a €40 million framework deal with Siemens AG to provide engineering, automation, telecommunications, and building technology systems. This contract positions Siemens as the Main Automation Contractor (MAC) for the lithium extraction plant in Landau, the central lithium plant at Frankfurt’s Industrial Park Höchst, and the production well sites.

With construction already underway, this agreement marks a critical milestone in the development of Lionheart, an integrated lithium and renewable energy project in Germany’s Upper Rhine Valley. The project aims to produce 24,000 tonnes of lithium hydroxide monohydrate annually, enough for roughly 500,000 electric vehicle batteries, alongside 275 GWh of renewable power and 560 GWh of heat per year over an anticipated 30-year lifespan.

Siemens’ Role and Investment in Lionheart

Siemens will deliver and engineer the distributed control systems, industrial networks, cybersecurity infrastructure, building automation, and safety systems essential to Lionheart’s operations. The framework structure allows Vulcan to issue staged purchase orders for specific work packages throughout the project’s delivery, with a minimum aggregate commitment of €40 million.

Notably, Siemens Financial Services has also committed €67 million as part of Vulcan’s broader €2.2 billion financing package secured in December 2025, underscoring Siemens’ strategic and financial backing of the project. This follows a 2025 Memorandum of Understanding designating Siemens as a preferred supplier through to the end of 2035, covering Lionheart and future development phases.

Vulcan’s CEO Cris Moreno highlighted the synergy between the two companies, noting Siemens’ extensive local presence and experience in delivering automation and digital technology systems to industrial projects in the region. This partnership is positioned to support Europe’s first fully domestic and sustainable lithium supply chain.

Project Progress and Strategic Significance

The Siemens agreement comes on the heels of Vulcan’s recent five-year lithium royalty exemption granted by the German state, which improves the project’s economics by waiving royalties until 2030. Along with the financing and supply agreements, these developments reinforce Vulcan’s momentum as it advances toward commercial lithium production.

While the framework contract sets a minimum spend, the timing and scope of individual purchase orders remain subject to project progress and operational needs. The agreement includes standard warranties, liability provisions, and mutual indemnities, reflecting market norms for contracts of this nature.

As Lionheart moves deeper into construction and commissioning, Vulcan’s integrated approach, extracting lithium from geothermal brines while co-producing renewable energy, continues to attract attention as a potential blueprint for low-carbon critical materials supply in Europe.