Company Interview / Vulcan's $4B EV boost

Key points:

Vulcan Energy (ASX:VUL) completes funding for $4bn German Lionheart lithium projectAims to supply Europe’s first battery-grade lithium hydroxide for EVs Key partners include Hochtief and Sedgman for project delivery Significant backing from the European Investment Bank and multiple export credit agencies Target production capacity of 24,000 tonnes of lithium hydroxide by 2028

Vulcan Energy (ASX:VUL) secures nearly $4 billion in funding for its landmark Lionheart lithium project in Germany, with the aim to supply battery-grade lithium hydroxide for electric vehicle batteries. Francis Wedin from Vulcan Energy highlights the significance of reaching this final investment decision after a seven-year journey from start-up to now, designating the project as a critical step forward for Europe’s raw materials supply chain resilience.

Wedin sets out that Europe’s dependence on lithium imports poses strategic risks for its automotive industry, which is a leading employer, especially in Germany. Vulcan Energy is positioned to become the region’s first supplier of battery-quality lithium hydroxide, with both upstream and downstream operations. The project is classified as ‘strategic’ under the EU's Critical Raw Materials Act. Major funding sources include the European Investment Bank and export credit agencies from France, Italy, Denmark, Canada, and Australia. The German government is also contributing more than €354 million in grants and equity.

Wedin details recent joint venture agreements with Sedgman and Hochtief, the latter also increasing its shareholding in Vulcan Energy, providing project and equity financing. The construction phase is expected to be completed by mid-2028, with targeted production of 24,000 tonnes of lithium hydroxide annually—enough to supply batteries for 500,000 electric vehicles each year. Long-term support from Hancock Prospecting, led by Gina Rinehart, remains strong.