Vulcan Energy secures $2.6bn financing package for lithium project

Vulcan Energy Resources has received a financing bundle of €2.2bn ($2.57bn) to wholly money the operation and improvement of signifier 1 of the Lionheart lithium and renewable vigor task successful the Upper Rhine Valley, Germany.

With this financing successful place, the Vulcan committee has approved the last concern determination (FID) for signifier 1 of the Lionheart project.

Execution of the task is acceptable to statesman successful the coming days.

Vulcan stated that signifier 1 of the Lionheart task is expected to presumption the institution arsenic a “key enabler” of Europe’s artillery and electrical conveyance (EV) proviso chain, and arsenic a “climate champion” by delivering low-cost lithium and renewable vigor for Europe.

Phase 1 of Lionheart features the improvement of an integrated lithium and renewable vigor facility. The task aims to execute an yearly accumulation capableness of 24,000 tonnes of lithium hydroxide monohydrate (LHM), which is capable to proviso astir 500,000 EV batteries each year.

In summation to lithium production, the task is designed to make 275 gigawatt-hours (GWh) of renewable powerfulness and 560GWh of vigor annually for section consumers, with an expected operational lifespan of astir 30 years.

The improvement volition see respective cardinal facilities: geothermal-lithium brine accumulation wells and their supporting facilities; ancillary infrastructure specified arsenic substations and pipelines; a renewable powerfulness and vigor plant; a lithium extraction works that utilises Vulcan’s proprietary VULSORB Adsorption-type Direct Lithium Extraction exertion to extract lithium from brine; and a cardinal lithium plant.

The extracted lithium volition past beryllium processed astatine this cardinal lithium works to nutrient battery-quality LHM.

Most of the large contracts required for signifier 1 person already been signed with task partners, with the remaining agreements expected to beryllium finalised by the extremity of this year.

The task has besides secured afloat offtake agreements for its lithium accumulation for the archetypal 10 years, partnering with Europe-focused buyers.

Commercial accumulation of LHM is scheduled to statesman successful 2028 pursuing a operation play of astir 2 and a fractional years.

The full Phase One Financing Package amounts to astir €2.2bn (A$3.9bn), providing Vulcan with the indispensable funds to screen the improvement costs of signifier 1 astatine Lionheart.

This financing volition enactment the task done its construction, commissioning and start-up phases, carrying it done to the procreation of its archetypal currency flow.

Vulcan has besides received important fiscal backing from HOCHTIEF, which has invested a full of €169m.