World's First Zero-Carbon Lithium Project Secures Full Funding

Written by Martin Lynch, European News Editor for IIR News Intelligence (Sugar Land, Texas)

Summary

The world's first zero-carbon lithium and renewable energy project in Germany has reached financial close on 2.2 billion euro (US$3.9 billion) in funding.

Final Funding Reached

Final funding of 2.2 billion euro (US$3.9 billion) has been reached to progress the construction of the world's first zero-carbon lithium and renewable energy project  in Germany. Developer Vulcan Energy Resources said construction of the first phase of Project Lionheart in the Upper Rhine Valley Brine Field (URVBF), is underway. According to Industrial Info Resources data, there are 15 Vulcan projects underway worth roughly US$1.8 billion in investment. Vulcan aims to extract lithium from geothermal brine to establish a local source of sustainable lithium in Europe, claiming its combined geothermal and lithium resource is the largest in Europe.

A Lighthouse Project for Europe

Vulcan calls Lionheart a "lighthouse project for Europe's energy and critical raw material resilience." It is targeting production capacity of 24,000 tonnes of lithium hydroxide monohydrate (LHM), enough for roughly 500,000 electric vehicle (EV) batteries per year. It will also generate 275 gigawatt-hours (GWh) of renewable power and 560 GWh of heat per annum for local consumers, over an estimated 30-year project life. "Reaching Financial Close is a significant milestone and reflects the continued support from our financing partners, including European and German government agencies, commercial banks, and strategic industrial partners, " said Vulcan's executive director and group chief financial officer, Felicity Gooding. "We continue to enact our strategic plan to deliver Lionheart on time, on budget and to nameplate capacity."

Project Details

Vulcan's Rhine prospect includes 27.7 million tonnes of contained lithium carbonate equivalent (LCE), of which 4.16 million tonnes are to be developed as part of the Phase 1 Lionheart area. Vulcan is constructing two commercial production facilities: a lithium extraction plant (LEP) for the extraction of lithium chloride in Landau and a central lithium plant (CLP) for further processing into lithium hydroxide monohydrate (LHM) in Frankfurt-Höchst. Construction started on the downstream CLP earlier this month, which will handle the conversion of lithium chloride, extracted from geothermal brine, into lithium hydroxide monohydrate (LHM) through electrolysis. "We are delighted to move beyond preparatory works and start full scale construction at our commercial lithium chemical plant," said Cris Moreno, managing director and chief executive officer of Vulcan. "This groundbreaking event follows a similar ceremony held at our upstream lithium extraction plant in Landau late last year and highlights the progress towards our construction schedule and our 2028 commercial start of production target."

European Support

Last December, the lending arm of the European Union (EU), the European Investment Bank (EIB), agreed to provide 250 million euro (US$291 million) in financing for the Lionheart project claiming that it would "serve as a key enabler of Europe's battery and electric vehicle value chain." Nicola Beer, vice‑president of the EIB, commented: "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."

Key Takeaways 

• The world's first zero-carbon lithium and renewable energy project, located in Germany, has reached financial close on 2.2 billion euro (US$3.9 billion) in funding.
• The plant will produce 24,000 tonnes of lithium hydroxide monohydrate (LHM), enough for 500,000 electric vehicle (EV) batteries per year. 
• Industrial Info Resources is tracking 15 Vulcan projects worth roughly US$1.8 billion in investment. 

About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 Trillion (USD).