German Governments Approve AUD$186 Million Grant Funding for Phase One Lionheart

Vulcan Energy has received approval for two grants totalling up to €104 million (approximately A$186 million) to support the development of industrial-scale lithium production and processing facilities within its Phase One Lionheart Project.

The funding is being provided by the German Federal Government and the states of Rhineland-Palatinate and Hesse through programmes designed to strengthen European battery supply chains and support investment in critical raw materials.

The grants will be allocated to the Li4BAT (Clean Lithium for Battery Cell Production) initiative, which forms part of Vulcan's integrated lithium and renewable energy development in Germany's Upper Rhine Valley.

Phase One Lionheart is designed to produce 24,000 tonnes of lithium hydroxide monohydrate annually, enough for approximately 500,000 electric vehicle batteries per year, while also generating renewable geothermal electricity and heat for local communities and industry.

The funding approval reflects growing support from German and European institutions for the development of domestic critical raw materials supply chains and battery manufacturing capacity.

Vulcan Energy Managing Director and CEO Cris Moreno said:

"We welcome this strong support from the German Federal Government and the state governments of Rhineland-Palatinate and Hesse.

The Li4BAT grant will support the development of domestic lithium production in Europe and help strengthen supply chains for the region's battery and electric vehicle industries.

Lithium remains a critical raw material for electrification, and projects such as Lionheart play an important role in supporting Europe's industrial competitiveness and energy transition."

The grant funding represents another important milestone for Phase One Lionheart as Vulcan continues advancing project development and construction activities in Germany.