International 11. Dec 2024

Vulcan secures EIB Board approval to participate in Phase One financing

Vulcan Energy (Vulcan, ASX: VUL, FSE: VUL, the Company) is pleased to announce an update on the proposed involvement of the European Investment Bank (EIB) in the Company’s debt financing process, with the EIB Board approving its participation.

Highlights

  • On 23 February 2024, the Company announced its Phase One Project was potentially suitable for EIB financing and had advanced to the Under Appraisal stage of the process. The EIB Board has now approved its participation, with the financing potentially amounting to up to €500m (~A$819m), pending completion of final due diligence, signing of legal documentation and final internal approval
  • The potential €500m financing envelope can be split into an EIB direct uncovered facility, funding under export credit agency (ECA) covered facilities and as liquidity lines for participating commercial banks
  • The EIB’s involvement is expected to serve as a cornerstone to complement the ongoing Phase One funding process. The Company is advancing its financing process, supported by BNP Paribas as financial advisor, following strong engagement throughout 2024 with commercial banks and government-backed ECAs. Vulcan has already received a €120m (~A$196m) commitment from Export Finance Australia, as well as an indication of strong support from Export Development Canada, Bpifrance Assurance Export, and SACE
  • The EIB is the lending arm of the European Union (EU) and one of the largest climate finance providers globally. The EU seeks to provide support through a financial pathway toward sustainable and resilient domestic supply chain development for Europe. The EU is aiming to reduce net greenhouse gas emissions by 55% by 2030 and no net emissions of greenhouse gases by 2050
  • Vulcan is developing the world’s first integrated renewable energy and lithium project in the Upper Rhine Valley, Germany, aiming to decarbonise the lithium supply chain for electric vehicles (EVs) while supplying local communities with renewable heat and power
  • The Phase One Project is targeting the production of 24,000 tonnes per annum of Lithium Hydroxide Monohydrate (LHM), equivalent to approximately 500,000 EVs. Vulcan will supply key auto and battery makers in the European supply chain, including its fourth largest shareholder, Stellantis.

Group Chief Financial Officer, Felicity Gooding, commented:“Approval by the EIB to participate in Vulcan’s debt financing process strongly reflects the significance of this project in Germany and broader Europe.”

“Our aim of building a fully domestic, sustainable lithium supply chain in Europe, for Europe, ultimately requires the support of financiers such as the EIB, and confirmation of its participation is a welcome and timely development.”

“We look forward to providing further updates to our shareholders on the Project.”

 

Media

Annabel Roedhammer | Vice President Communications | aroedhammer@v-er.eu | +49 1511 410 1585

Judith Buchan | Communications Lead – APAC | jbuchan@v-er.eu | +61 411 597 326