The European Investment Bank (EIB) has agreed to provide EUR 250 million in financing for Vulcan Energy’s pioneering EUR 2 billion Phase One Lionheart Project (the Project or Lionheart) in the Upper Rhine Valley, Germany. This will deliver Europe’s first integrated supply of battery-quality lithium while generating renewable energy and heat for local communities, advancing the EU’s green transformation and industrial competitiveness.

Vulcan’s Project uses geothermal brine to produce battery-quality lithium for up to 500,000 electric vehicles each year, minimising carbon and environmental footprint. The EIB’s support demonstrates Europe’s commitment to secure responsible and independent critical raw materials supply chains, critical for the battery, automotive, and energy storage sectors.

Nicola Beer, Vice President of the EIB, said: “With Vulcan’s Project, we are powering Europe’s mobility and energy storage future with materials produced sustainably at home. This is another landmark for EIB’s scaled-up support for the EU Critical Raw Materials Act and the Green Deal.”

Vulcan Energy’s Managing Director and CEO Cris Moreno​​ said: “The EIB’s participation underlines the significance of developing a European, sustainable lithium supply chain while supporting local innovation, employment, and a carbon-neutral future.”

Commercial construction of Vulcan’s Phase One Lionheart Project is expected to take 2.5 years from completion of financing, with targeted first production in 2028, and will help enable the region’s climate and industrial ambitions.
Securing lithium for electric vehicle battery production
Vulcan’s Phase One Lionheart Project in Landau and Frankfurt-Höchst, Germany, aims to produce 24,000 tonnes of lithium hydroxide monohydrate (LHM) per year—enough to supply batteries for about 500,000 electric vehicles, all with zero fossil fuels in the production process.

This milestone establishes one of the world’s most sustainable, scalable, and cost-efficient lithium supply chains and advances Germany’s raw material independence.

Vulcan’s integrated geothermal and lithium value chain extracts lithium chloride (LiCl) directly from naturally heated subterranean brine while simultaneously producing renewable geothermal energy for local communities and industry.

Vulcan’s upstream Lithium Electrolysis Optimisation Plant (LEOP), operational since April 2024, delivered Europe’s first fully sustainable, high-purity lithium chloride—subsequently refined into battery-quality LHM at the company’s downstream Central Lithium Electrolysis Optimisation Plant (CLEOP) in Frankfurt, supporting clean mobility and climate action across the continent. The Phase One Lionheart Project will involve building larger versions of these plants to achieve the planned production capacity.

Providing heat to Landau
Vulcan’s Phase One Lionheart Project is already delivering tangible climate and energy benefits by supplying geothermal renewable heat directly to German municipal energy provider EnergieSüdwest AG (ESW) in Landau. Using deep geothermal wells, Vulcan’s operations provide clean, sustainable heat into ESW’s network, supporting several district heating systems across the city.

This new geothermal heating initiative reduces the use of fossil fuels in Landau’s district heating, representing a significant first step toward a long-term and continuous transition to renewable energy for households and businesses.

Supported by a major grant from Germany’s Federal Ministry of Economics and Climate Protection, Vulcan’s HEAT4LANDAU Project plans to expand production to deliver sustainable, renewable geothermal heat to Landau and surrounding communities, underpinning Landau’s ambitions for climate-neutral, locally sourced energy and contributing to Europe’s broader climate protection objectives
EIB strengthening support for critical raw materials
The EIB is strengthening support for new investment to securing Europe’s future and supporting critical raw materials value chains through the EIB Critical Raw Materials Strategic Initiative, targeting financing and advisory support for European projects that deliver secure, sustainable supply of battery-grade minerals.

By backing Vulcan’s integrated lithium and geothermal energy development, the EIB advances the EU’s Critical Raw Materials Act objectives—helping Europe diversify supply, promote responsible sourcing, and underpin the clean transition.

This investment demonstrates how EIB is working with industry and international partners to ensure European industries and societies have reliable access to the resources needed for long-term resilience and competitiveness.
Global financial institutions backing European critical raw material investment
The EIB’s investment forms part of a wider international financing effort for the Lionheart Project, with commitments also provided by a consortium of leading financial institutions.

Alongside the EIB, the Project is being supported by ABN AMRO, Unicredit, Natixis, ING, BNP Paribas, KommunalKredit, OCBC, Export Finance Australia, Export Development Canada, Export and Investment Fund of Denmark (EIFO), BPI France, and SACE.

This collective participation by major commercial banks and export credit agencies underlines the strong confidence of the global financial community in Vulcan’s integrated approach to sustainable lithium production and marks a milestone for multi-lateral collaboration in supporting Europe’s clean technology value chain.

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Background information
EIB
The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. Built around eight core priorities, we finance investments that contribute to EU policy objectives by bolstering climate action and the environment, digitalisation and technological innovation, security and defence, cohesion, agriculture and bioeconomy, social infrastructure, the capital markets union, and a stronger Europe in a more peaceful and prosperous world.
The EIB Group, which also includes the European Investment Fund (EIF), signed nearly €89 billion in new financing for over 900 high-impact projects in 2024, boosting Europe’s competitiveness and security.
All projects financed by the EIB Group are in line with the Paris Climate Agreement, as pledged in our Climate Bank Roadmap. Almost 60% of the EIB Group’s annual financing supports projects directly contributing to climate change mitigation, adaptation, and a healthier environment.
Fostering market integration and mobilising investment, the Group supported a record of over €100 billion in new investment for Europe’s energy security in 2024 and mobilised €110 billion in growth capital for startups, scale-ups and European pioneers. Approximately half of the EIB’s financing within the European Union is directed towards cohesion regions, where per capita income is lower than the EU average.
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Vulcan Energy

Vulcan Energy (ASX: VUL, FSE: VUL) is building the world’s first carbon neutral, integrated lithium and renewable energy business to decarbonise battery production. Vulcan’s Lionheart Project, located in the Upper Rhine Valley Brine Field bordering Germany and France, is the largest lithium resource in Europe1 and a tier-one lithium project globally. Harnessing natural heat to produce lithium from sub-surface brines and to power conversion to battery-quality material and using its in-house industry-leading technology VULSORB®, Vulcan is building a local, low-cost source of sustainable lithium for European electric vehicle batteries.

For more information, please email: presse@v-er.eu.