Vulcan Energy has secured financial close on its €2.2 billion Lionheart Project financing, unlocking funds to advance construction of Europe’s pioneering lithium hydroxide and renewable energy facility in the Upper Rhine Valley.
- €2.2 billion financing package reaches financial close
- Lionheart targets 24,000 tonnes lithium hydroxide annually
- Project supports 500,000 EV batteries per year
- Construction underway following positive Final Investment Decision
- Financing backed by European and German government agencies
Financial Close Unlocks Capital for Lionheart Construction
Vulcan Energy (ASX:VUL) has reached a critical milestone by achieving Financial Close on the €2.2 billion ($3.9 billion) financing package for its flagship Lionheart Project. This milestone means Vulcan can now access the remaining funds necessary to continue construction of its integrated lithium hydroxide and renewable energy facility, located in the Upper Rhine Valley Brine Field straddling Germany and France.
The Lionheart Project aims to produce 24,000 tonnes per annum of lithium hydroxide monohydrate (LHM), enough to supply roughly 500,000 electric vehicle batteries each year. Alongside lithium production, the project will generate 275 GWh of renewable power and 560 GWh of heat annually for local consumers, underpinning its role as a European energy and critical raw material lighthouse project.
Financing Structure and Strategic Backing
The financing package is a complex combination of equity and debt arrangements at the project, subsidiary, and company levels. It involves support from European and German government agencies, commercial banks, and strategic industrial partners. Vulcan’s Executive Director and CFO Felicity Gooding highlighted the milestone as a testament to ongoing partner confidence and the company’s commitment to delivering Lionheart on schedule and within budget.
This financial close follows Vulcan’s positive Final Investment Decision (FID) in December 2025, when the company also secured an underwritten institutional placement and entitlement offer. Construction kicked off shortly thereafter, with the project’s capital expenditure and drawdown schedules aligned to the financing terms. The company expects remaining conditions precedent to be met in tandem with construction progress, as is typical for projects of this scale.
Progressing Europe’s Domestic Lithium Supply Chain
Lionheart represents a significant step towards bolstering Europe’s battery raw material independence, integrating lithium extraction with renewable geothermal energy generation. Vulcan’s proprietary VULSORB® technology extracts lithium from low-impurity geothermal brines, powering the processing plant with renewable energy and producing a co-product of heat and power for local consumption.
The project’s scale and integration promise one of the lowest cost lithium operations globally, positioning Vulcan at the forefront of sustainable battery material supply. Construction is well underway, as detailed in Vulcan’s recent update on the commencement of Lionheart construction, and the company has secured key contracts such as the €40 million automation deal with Siemens, a strategic partner also involved in the financing package.
Vulcan’s financing milestone builds on prior achievements including the granting of the first lithium production licence in the Upper Rhine Valley and a five-year lithium royalty exemption from the German state, measures that enhance the project’s economic viability and regulatory support.
Bottom Line?
Financial Close clears the path for Vulcan to advance Lionheart’s construction and deliver on Europe’s urgent lithium supply needs.
Questions in the middle?
- How will Vulcan manage potential risks that could delay financing drawdowns or construction milestones?
- What impact will evolving European battery demand and regulatory changes have on Lionheart’s long-term economics?
- Could Vulcan’s integrated renewable energy co-products open additional revenue streams beyond lithium?