Operating subsidiaries of Vulcan Energy Resources have signed a €1.185 billion ( US$1.38 billion ) debt package to develop the first phase of its Lionheart integrated lithium and renewable energy project in Germany.

The syndicate comprises the European Investment Bank, the Export Credit Agencies Bpifrance AE, Export and Investment Fund of Denmark, Export Finance Australia, Export Development Canada, and SACE of Italy, plus seven commercial banks; ABN Amro, BNP Paribas, ING, Kommunalkredit Austria, Natixis CIB, OCBC, and UniCredit. Norton Rose Fulbright advised the lenders. 

The European Investment Bank is providing €250 million. The financing package, which has a 13-year tenor, will support the construction and development of Phase One of Vulcan Energy’s Lionheart lithium and renewable energy project in the Upper Rhine Valley.

With an overall investment volume of over €2 billion, the project seeks to position Vulcan Energy as a key enabler of Europe’s battery and electric vehicle value chain and sustainable solutions, delivering low-cost lithium and renewable energy across Europe.

The project will build an integrated, battery‑quality lithium supply chain based on geothermal brines, helping to reduce Europe’s reliance on imported raw materials and support the decarbonization of transport and industry.

Vulcan’s process extracts lithium from naturally heated brine while at the same time generating renewable heat and power. This reduces carbon emissions and surface impact compared with conventional methods of lithium extraction and evaporation ponds.

“Lionheart is Europe’s first project to combine direct lithium extraction with renewable energy generation, setting a new standard for sustainable lithium. By securing a strategic supply of lithium for European industry, we are strengthening Europe’s sovereignty and supporting the energy transition. With innovative geothermal technology, domestic production, and strong public-private cooperation, the project puts the EU’s Critical Raw Materials Act into practice and reinforces Europe’s supply chain resilience,” says EIB vice president Nicola Beer.

Phase One, located in Landau and Frankfurt‑Höchst, Germany, is designed to produce 24,000 tonnes of lithium hydroxide monohydrate ( LHM ) per year, enough for the production of 500,000 electric vehicles. Commercial construction is expected to last around two and a half years with the start of production targeted for 2028.

The project is expected to provide approximately 12% of Europe’s projected demand for lithium hydroxide in 2030, significantly reducing the European industry’s dependency on imports and directly supporting the objectives of the EU’s Critical Raw Materials Act.