Strategic milestone in EU raw materials agenda

Vulcan Energy Resources has achieved a significant milestone with its Phase One Lionheart Project being granted Strategic Project status under the EU’s Critical Raw Materials Act (CRMA). This designation strengthens Vulcan’s position in Europe’s raw materials strategy and enhances its ability to secure financing. The CRMA framework, designed to reduce EU dependency on external sources for critical materials, provides benefits such as accelerated permitting, improved access to EU funding, and a pathway to favorable financing terms. Vulcan’s strong institutional backing, including support from ECAs and the EIB, positions it well to advance the Zero Carbon Lithium project. On this basis, we remain bullish and maintain our BUY rating with a PT of EUR 12.50.

Start of drilling and BASF seismic surveys.

Vulcan Energy continues to push forward with its lithium and geothermal energy strategy, successfully mobilizing its V20 drilling rig at the Schleidberg site and launching seismic surveys for BASF’s geothermal project in Ludwigshafen. Despite project financing still in progress, Vulcan maintains strong operational momentum, supported by a solid cash position of EUR 97.1m. With drilling underway and seismic data shaping future expansion, the company remains on track to advance its Phase One execution. We reiterate our PT of EUR 12.50 and our BUY rating, reflecting our
confidence in Vulcan’s ability to fully secure project financing.

Integrated LHM production at CLEOP

Vulcan Energy Resources has successfully produced battery-grade Lithium Hydroxide Monohydrate (LHM) at its Central Lithium Electrolysis Optimisation Plant (CLEOP) in Frankfurt. This demonstrates the viability of Vulcan’s fully integrated LHM production. The LHM will undergo pre-commercial qualification with major offtakers, including Stellantis, Renault, LG, and Umicore, paving the way for large-scale commercial production in Phase One. Meanwhile, Vulcan has secured substantial financial commitments and is awaiting the signing of definitive financing agreements and subsequent draw-down. We confirm our PT of EUR 12.50 and maintain our BUY rating.

Momentum builds for Phase One financing

Vulcan Energy Resources is achieving significant progress in securing funding for its Phase One Lionheart Project, which has garnered robust support in the past weeks, including EUR 500m in approved funding from the European Investment Bank and a EUR 879m conditional commitment from Export Finance Australia and seven commercial banks. Additional backing from German federal grants and equity raises further underscores strong institutional and governmental confidence. With a clear strategy to address the remaining funding requirements, Vulcan is set to advance critical infrastructure and execution activities. We are dropping our discount on valuation and increase our PT to EUR 12.50, which better reflects Vulcan’s project NPV. We maintain our BUY rating.