Listed in both Australia and Frankfurt, the company has secured offtake agreements with automakers such as Volkswagen, Stellantis, and Renault. It reported that its Lithium Extraction Optimization Plant in Landau, Germany, achieved strong initial results, with lithium extraction efficiency consistently exceeding 90%.
On Wednesday, Vulcan Energy announced the commencement of its first lithium chloride production at its German extraction facility, utilizing geothermal energy—a critical step in its plan to produce battery-grade lithium hydroxide. According to Vulcan Energy’s CEO, Cris Moreno, this production marks the first instance of locally sourced lithium in Germany, derived directly from the geothermal resources beneath the surface.
Vulcan Energy has secured licenses to explore over 1,000 kilometres of land in the Upper Rhine Valley region of Germany. This region is noted for its underground reservoirs of super-heated, lithium-rich brine. The company utilizes the geothermal heat not only to generate electricity but also to extract lithium from these brines.
In response to the European Union’s ambitious goals to secure vital raw materials needed for the green transition—including lithium and cobalt—by means of mining, recycling, and refining, Vulcan Energy highlighted challenges such as funding shortages, high energy costs, and local opposition that could impede these targets. To support national access to these crucial materials for high-tech and environmentally friendly initiatives, the German government established a 1.1 billion-euro investment fund in February.
Furthermore, Vulcan Energy, which is listed on stock exchanges in both Australia and Frankfurt, has established offtake agreements with major automotive manufacturers like Volkswagen, Stellantis, and Renault. The company reported that its Lithium Extraction Optimization Plant in Landau, Germany, has been showing promising early results, achieving over 90% efficiency in lithium extraction. These results align with the outcomes observed in Vulcan’s laboratory and pilot plant studies and are consistent with the expectations for its commercial operations, according to the company’s financing model.
Looking ahead, Vulcan plans to convert the lithium chloride produced into battery-grade lithium hydroxide at a new conversion facility in Frankfurt later this year. CEO Moreno disclosed plans to raise funds for a large-scale industrial plant aimed at producing 24,000 tonnes of lithium hydroxide annually by the end of 2026—sufficient to supply around 500,000 electric vehicles. Moreno expressed optimism about closing the financing for this project within the next four to five months.
In a significant development, Vulcan Energy revealed in February that it had successfully passed the initial review by the European Investment Bank (EIB) for potential debt financing up to 500 million euros (approximately USD 537.15 million). This funding would support Vulcan’s ambitious projects and further its contributions to Europe’s green transition initiatives.
