Vulcan Energy Resources reported further progress on its Phase One Lionheart Project in Germany during the quarter ending 31 March 2025, including the production of Europe’s first fully integrated, battery-quality lithium hydroxide monohydrate (LHM). The company also achieved several permitting and commercial milestones as it moves toward full construction.
During the quarter, Vulcan’s Central Lithium Electrolysis Optimisation Plant in Frankfurt produced its first battery-grade LHM using high-purity lithium chloride concentrate processed from brine at its upstream extraction facility in Landau. This marks the first time such integrated production has been achieved in Europe.
The project was granted Strategic Project status under the European Commission’s Critical Raw Materials Act (CRMA), reflecting its importance to Europe’s supply chain diversification efforts. Drilling activities commenced with the mobilisation of Vulcan’s V20 rig to the Schleidberg well site, and a 70 km 2D seismic survey was completed for the geothermal heat project in Ludwigshafen, undertaken with BASF SE.
In permitting, the main operating plan for constructing the Lithium Extraction Plant (LEP) in Landau was approved, allowing preparations for building Vulcan’s combined geothermal and lithium extraction plant (G-LEP).
On the financing front, Vulcan raised approximately A$8 million through a share purchase plan in addition to €100 million from an institutional placement in December 2024. The company is now pursuing additional financing via the €1 billion German Raw Materials Fund (RMF), adjusting its Phase One financing timeline to the second half of 2025 to accommodate government participation.
Operationally, Vulcan also acquired geox GmbH, securing geothermal wells, energy generation assets, and licences near Landau. This acquisition consolidates upstream assets intended for lithium production and renewable energy supply. Additionally, the company began supplying geothermal heat to EnergieSüdwest AG, supporting Germany’s push to decarbonise heating.
Vulcan is in advanced talks with a premium German automaker to finalise a new eight-year lithium hydroxide offtake agreement after terminating a previous agreement with Renault Group, freeing up approximately 3% of planned sales volume for the first decade of production.
CEO Cris Moreno emphasised the project’s strategic importance, especially amid new global tariffs, and reaffirmed targets for 2025, including new production well drilling, finalising financing, starting plant construction, and commencing product qualification with offtake partners.
