European Investment Bank Commits €250 Million to Phase One Lionheart

The European Investment Bank (EIB) has agreed to provide €250 million in financing for Vulcan Energy's Phase One Lionheart Project in Germany's Upper Rhine Valley, marking a significant milestone for the development of Europe's domestic critical raw materials sector.

The financing forms part of the project's broader funding package and reflects growing European support for strategic projects that strengthen regional supply chains, energy security and industrial competitiveness.

Phase One Lionheart is an integrated lithium and renewable energy project designed to produce 24,000 tonnes of lithium hydroxide monohydrate annually, enough to supply batteries for approximately 500,000 electric vehicles each year. In addition to lithium production, the project will generate renewable geothermal electricity and heat for local communities and industry.

The project uses geothermal brine as both a renewable energy source and a lithium-bearing resource, creating an integrated production model that combines lithium extraction with renewable energy generation.

EIB Vice-President Nicola Beer said:

"With Vulcan's project, we are helping power Europe's mobility and energy storage future with materials produced in Europe. This is another important step in supporting the objectives of the EU Critical Raw Materials Act and Europe's industrial transformation."

The investment highlights the strategic importance of developing domestic sources of critical raw materials to support Europe's battery, automotive and energy storage industries.

Vulcan Energy Managing Director and CEO Cris Moreno said:

"The EIB's participation underlines the importance of developing a European lithium supply chain while supporting innovation, employment and industrial growth. This backing demonstrates confidence in both the Lionheart Project and Europe's ambition to strengthen critical raw material supply security."

Supporting Europe's Critical Raw Materials Strategy

The EIB's funding supports wider European efforts to increase domestic production and processing capacity for critical raw materials used in clean technology manufacturing.

As part of the project, Vulcan will scale up technology successfully demonstrated at its optimisation plants in Germany, which have produced high-purity lithium chloride and battery-grade lithium hydroxide through integrated geothermal and lithium extraction processes.

Phase One Lionheart is expected to begin production in 2028 following an estimated 2.5-year construction period.

Renewable Heat for Local Communities

Alongside lithium production, Vulcan's geothermal operations are already contributing renewable heat to the city of Landau through cooperation with municipal utility EnergieSüdwest AG (ESW).

The Company's geothermal activities support the expansion of local district heating infrastructure and contribute to reducing dependence on conventional energy sources while enhancing long-term regional energy resilience.

International Support for Lionheart

The EIB financing forms part of a broader funding package supported by a group of international financial institutions, commercial banks and export credit agencies.

The participation of leading European and international lenders highlights confidence in Lionheart's integrated approach to lithium production and renewable energy generation and reinforces the project's role in supporting Europe's future battery materials supply chain.