Vulcan Energy has begun mobilising a second company-owned heavy-duty drill rig to its Lionheart lithium and geothermal project in Germany. The move is designed to support parallel well construction across the 28-well program, while first production remains targeted for the second half of 2028.
- Second heavy-duty rig mobilising to Lionheart’s Trappelberg well site
- Approximately €51 million invested in two in-house drilling rigs
- Vercana to operate the newly refurbished V10 rig
- Two rigs intended to accelerate the targeted 28-well program
- First Lionheart production target remains H2 2028
Second rig moves to Lionheart’s fourth well site
Vulcan Energy (ASX:VUL; FSE:VUL) is adding a second heavy-duty drill rig to Project Lionheart in Germany, giving its in-house drilling operation the capacity to work across multiple well sites. The newly refurbished V10 rig is being mobilised to Trappelberg, Lionheart’s fourth well site, where it will join the existing V20 rig.
Vulcan says seven production and reinjection wells are already in place at Lionheart. The company’s latest well test showed an estimated injection rate above the assumption used in its development plan, while the project recorded €88.8 million of development spending in the latest quarter. The second rig therefore arrives as field activity and expenditure are already moving higher, rather than as a standalone equipment purchase.
€51 million equipment investment supports parallel drilling
Vulcan has invested approximately €51 million, or about A$82 million, in its two drilling rigs. Vercana, Vulcan’s wholly owned in-house drilling company, will operate V10 and oversee well delivery activities for Lionheart.
V10 is designed for deep wells, with 2,000 horsepower, 500 tonnes of hook-load capacity and fluid-pressure systems rated to 7,500 psi. Vulcan says owning and operating the rigs is intended to give it greater control over drilling schedules and reduce reliance on third-party providers as construction expands.
Lionheart remains tied to a 28-well development plan
The second rig is intended to accelerate delivery of Lionheart’s targeted 28-well program and support the project’s geothermal brine production targets. The company describes the parallel drilling capability as an important execution step, but today’s announcement concerns mobilisation rather than completed drilling, new resource data or a change to the production forecast.
Phase One remains designed to produce 24,000 tonnes a year of lithium hydroxide monohydrate, alongside 275 GWh of renewable power and 560 GWh of heat annually over an estimated 30-year project life. Vulcan continues to target first production in the second half of 2028, with the project under construction and supported by take-or-pay lithium offtake contracts.
Execution speed becomes the next test
The equipment announcement adds a tangible construction milestone to Lionheart’s financing and development story. Vulcan previously reported financial close on €2.2 billion of project financing, and the company says Lionheart is progressing on time and on budget. Those claims remain forward-looking; the more concrete test will be how quickly V10 reaches Trappelberg, begins drilling and translates additional rig capacity into completed wells.
Bottom Line?
V10 increases Vulcan’s control over Lionheart’s well program, but the investment thesis still depends on converting mobilisation into completed wells and maintaining the H2 2028 production target.
Questions in the middle?
- How quickly will V10 arrive at Trappelberg and begin drilling?
- Will two in-house rigs materially shorten delivery of the 28-well program?
- Can project spending remain aligned with Vulcan’s stated schedule and budget as activity accelerates?