Jul 31, 2025
Vulcan Energy has obtained a EUR104 million grant from Germany for its geothermal lithium project.
Vulcan Energy has announced that it has received approval for two grants from the German government amounting to EUR 104 million to support its Clean Lithium for Battery Cell Production (Li4BAT) project.
These grants, funded by the German Federal Government and the states of Rhineland-Palatinate and Hesse under the Federal Ministry of Economy and Energy (BMWE) through the European Union’s Temporary Crisis and Transition Framework (TCTF), aim to strengthen the supply chain for critical raw materials in Germany and Europe. The Li4BAT initiative will facilitate the industrial-scale production of lithium from geothermal brine as part of Vulcan’s Phase One Lionheart Project, targeting the supply of high-quality lithium hydroxide for the European electric vehicle (EV) battery industry.
The disbursement of the grants is contingent upon specific conditions, including finalizing the overall Phase One financing by September 1, 2025, starting construction by January 2026, and completing the Raw Materials Fund (RMF) equity investment by March 31, 2026. The company is negotiating a €150 million investment from the RMF, which is expected to complete the Phase One financing in the second half of 2025. The Li4BAT grants will be paid out over 36 months based on eligible expenses starting from October 1, 2025.
Cris Moreno, Managing Director and CEO of Vulcan Energy, expressed appreciation for the support from the German Federal Government and the state governments, emphasizing that the Li4BAT grant will help supply sustainable lithium to the German and European EV markets. He noted the importance of lithium in the energy transition and the EV production process, and mentioned that updates on the project's financing and construction timeline will be provided in the coming months.
These grants, funded by the German Federal Government and the states of Rhineland-Palatinate and Hesse under the Federal Ministry of Economy and Energy (BMWE) through the European Union’s Temporary Crisis and Transition Framework (TCTF), aim to strengthen the supply chain for critical raw materials in Germany and Europe. The Li4BAT initiative will facilitate the industrial-scale production of lithium from geothermal brine as part of Vulcan’s Phase One Lionheart Project, targeting the supply of high-quality lithium hydroxide for the European electric vehicle (EV) battery industry.
The disbursement of the grants is contingent upon specific conditions, including finalizing the overall Phase One financing by September 1, 2025, starting construction by January 2026, and completing the Raw Materials Fund (RMF) equity investment by March 31, 2026. The company is negotiating a €150 million investment from the RMF, which is expected to complete the Phase One financing in the second half of 2025. The Li4BAT grants will be paid out over 36 months based on eligible expenses starting from October 1, 2025.
Cris Moreno, Managing Director and CEO of Vulcan Energy, expressed appreciation for the support from the German Federal Government and the state governments, emphasizing that the Li4BAT grant will help supply sustainable lithium to the German and European EV markets. He noted the importance of lithium in the energy transition and the EV production process, and mentioned that updates on the project's financing and construction timeline will be provided in the coming months.