Dec 5, 2025
Vulcan Energy obtains complete financing for its geothermal lithium project in Germany.
Vulcan Energy has obtained a substantial financial package of around EUR 2.2 billion from various sources, which will fully finance the construction of Phase One of the Lionheart lithium and geothermal energy project in Germany's Upper Rhine Valley.
With this funding, the company has reached a Final Investment Decision for Phase One of the Lionheart project, and execution is set to begin shortly.
Phase One will create an integrated renewable energy project that aims to generate 24,000 tonnes of lithium hydroxide monohydrate (LHM) annually for 500,000 electric vehicle batteries, along with 275 GWh of power and 560 GWh of heat over an expected project lifespan of 30 years.
The planned facilities will consist of a Lithium Extraction Plant, a Central Lithium Plant, geothermal production wells, and supporting infrastructure. Initial commercial LHM production is projected to begin in 2028 after a construction period of 2.5 years.
The financing package consists of various financial instruments and support from different agencies and institutions.
€1.185 billion in senior debt financing from 13 financial institutions, including the European Investment Bank, five Export Credit Agencies, and seven commercial banks
€204 million in grants from the German government (including a previously mentioned €104 million grant)
€150 million equity investment in Vulcan Energie Ressourcen GmbH by the KfW Raw Materials Fund, representing a 14% stake
€133 million from a group of strategic investors, including HOCHTIEF, Siemens Financial Services, and Demeter, for a 15% equity interest in the Phase One Lionheart project entity
€528 million raised through an underwritten equity component by Vulcan at €2.24 per share
“Securing this financing package and achieving a positive FID is a major milestone for Vulcan Energy. It enables the company to move from development to execution, constructing the commercial-scale supply chain for Lionheart,” stated Cris Moreno, Managing Director and CEO of Vulcan Energy.
“Lionheart is a flagship project for Europe, poised to transform lithium production by establishing the continent's first fully domestic and sustainable lithium value chain. It will also offer a clean and dependable source of renewable energy to local communities and industries in Germany’s Upper Rhine Valley.”
With this funding, the company has reached a Final Investment Decision for Phase One of the Lionheart project, and execution is set to begin shortly.
Phase One will create an integrated renewable energy project that aims to generate 24,000 tonnes of lithium hydroxide monohydrate (LHM) annually for 500,000 electric vehicle batteries, along with 275 GWh of power and 560 GWh of heat over an expected project lifespan of 30 years.
The planned facilities will consist of a Lithium Extraction Plant, a Central Lithium Plant, geothermal production wells, and supporting infrastructure. Initial commercial LHM production is projected to begin in 2028 after a construction period of 2.5 years.
The financing package consists of various financial instruments and support from different agencies and institutions.
€1.185 billion in senior debt financing from 13 financial institutions, including the European Investment Bank, five Export Credit Agencies, and seven commercial banks
€204 million in grants from the German government (including a previously mentioned €104 million grant)
€150 million equity investment in Vulcan Energie Ressourcen GmbH by the KfW Raw Materials Fund, representing a 14% stake
€133 million from a group of strategic investors, including HOCHTIEF, Siemens Financial Services, and Demeter, for a 15% equity interest in the Phase One Lionheart project entity
€528 million raised through an underwritten equity component by Vulcan at €2.24 per share
“Securing this financing package and achieving a positive FID is a major milestone for Vulcan Energy. It enables the company to move from development to execution, constructing the commercial-scale supply chain for Lionheart,” stated Cris Moreno, Managing Director and CEO of Vulcan Energy.
“Lionheart is a flagship project for Europe, poised to transform lithium production by establishing the continent's first fully domestic and sustainable lithium value chain. It will also offer a clean and dependable source of renewable energy to local communities and industries in Germany’s Upper Rhine Valley.”