Vulcan Energy Secures Key Infrastructure Deal for Lithium Project

Despite recent share price volatility, Vulcan Energy Resources has reached a significant implementation milestone for its flagship German lithium project. The company announced a multi-million euro agreement with industrial technology leader ABB, marking a pivotal shift from planning to construction for its lithium extraction venture in the Upper Rhine Valley.

The deal follows Vulcan's recent success in securing €2.2 billion in project financing, which includes participation from the European Investment Bank. Notably, this operational progress coincides with a show of internal confidence. Company director Angus Barker participated in the latest capital increase, a move interpreted as a signal of faith in the long-term venture. This insider buying activity comes even as the stock has declined approximately 38% over a 30-day period, with shares currently trading around €2.20.

ABB to Deliver €46 Million in Electrical Works

At the heart of the new agreement is the electrical infrastructure for the initial phase of Vulcan's Lionheart project. The partnership is governed by three contracts with a combined value of €46 million. ABB will act as the main contractor, responsible for the complete electrification scope. This includes work from the lithium extraction plant in Landau all the way to the central processing facility at the Höchst Industrial Park in Frankfurt.

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The assignment is comprehensive, covering everything from connection to the 110-kilovolt power grid down to supplying electricity for the geothermal well sites. Securing this technical foundation for the plants' energy supply represents a critical step within the company's development timeline, enabling construction to commence imminently.

Project Aims to Supply European EV Battery Chain

Vulcan's ambition is substantial: it is targeting annual production of 24,000 tonnes of lithium hydroxide. This output would be sufficient to supply batteries for roughly 500,000 electric vehicles. The project's commercial viability is underpinned by its designation as a strategic EU project and the existence of long-term, 10-year offtake agreements with partners including automotive giant Stellantis, LG Corp, and materials specialist Umicore.

With financing secured and these major construction contracts now awarded, the build phase can begin in earnest. The company's schedule indicates that full operational capacity should be reached approximately two and a half years after the initial commissioning. For Vulcan, this initiates the crucial realization phase of its plan to bolster European independence within the battery materials supply chain.