Vulcan Energy Secures Key Contractor, Moves Into Construction Phase

The operational execution of Vulcan Energy's flagship lithium project in the Upper Rhine Valley is now underway, following the company's successful completion of a major financing round. A pivotal step in this transition from pure development to technical implementation has been taken with the formal appointment of technology group ABB as the primary contractor for the Lionheart project.

Vulcan has selected ABB to serve as the Main Electrical Contractor (MEC), a critical role for the planned geothermal and lithium extraction facilities. This partnership places responsibility for the project's complete electrical infrastructure—including the supply, installation, and commissioning of switchgear, transformers, and distribution systems—in the hands of an established industrial partner.

This move is central to Vulcan's strategy of mitigating technical risk as it advances its "Zero Carbon Lithium" initiative. The electrical systems will form the backbone for the intended climate-neutral production process. This operational progress stands in contrast to the equity's recent performance, however, with shares having declined approximately 38% over a 30-day period to a current trading level of €2.24.

Construction Launch Backed by Substantial Funding

The contract award to ABB is a direct consequence of a financial breakthrough achieved in early December. Vulcan Energy secured a comprehensive funding package valued at roughly €2.2 billion. This blend of bank debt, equity from institutional investors, and government grants provides the necessary foundation to commence the initial construction phases.

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Key project milestones and details are summarized below:

• Primary Contractor: ABB is responsible for electrification infrastructure in Phase One.
• Project Timeline: Construction phases are now beginning, targeting the start of commercial production by 2028.
• Financial Backing: Fully supported by the €2.2 billion financing package.
• Offtake Agreements: Future production volumes have already been allocated to automotive manufacturer Stellantis, battery cell maker LG Energy Solution, and materials technology group Umicore.

A Shift in Risk Profile for Investors

For shareholders, the appointment of a main contractor signals a strategic shift in the company's risk profile. The primary focus is now moving away from uncertainties surrounding funding toward the execution of a complex, integrated build-out. The project's integrated nature—simultaneously producing renewable energy and lithium hydroxide—makes the management of energy flows a significant technical challenge, one that ABB will now oversee.

With secured financing and confirmed construction partners in place, Vulcan Energy is positioning itself as one of the few lithium developers in Europe to have reached this advanced stage. As physical construction begins, market evaluation will increasingly center on the company's ability to adhere to its schedule and meet the targeted 2028 date for commercial operations.