Vulcan Energy has secured approximately €2.2 billion in financing for its Lionheart lithium and renewable-energy project in Germany, moving the development into its construction and execution phase.
The project will extract lithium from geothermal brines in Germany’s Upper Rhine Valley, while also producing renewable electricity and heat. The first phase is expected to produce around 24,000 tonnes of lithium hydroxide annually, together with approximately 275 GWh of renewable electricity and 560 GWh of renewable heat. Commercial production is targeted for 2028.
Major Step for European Lithium Supply
The financing significantly reduces one of Lionheart’s biggest development risks. Vulcan has also secured commercial lithium-production rights at Insheim, expanding its geothermal resource base. Unlike conventional lithium mines, Lionheart will pump lithium-bearing brine, extract the lithium and reinject the fluid underground. The geothermal system can simultaneously generate renewable energy, creating an integrated production model. The technology still faces important challenges, including well productivity, lithium recovery, plant reliability and processing performance at commercial scale.
Construction Becomes the Key Test
With financing secured, attention is shifting from fundraising to execution. Vulcan must manage drilling, geothermal infrastructure, lithium processing and downstream conversion while controlling construction costs. The project also enters a more selective lithium market following the price decline after the 2022–23 boom, making competitive operating costs increasingly important.
For Europe, Lionheart could provide a meaningful domestic source of battery-grade lithium hydroxide and demonstrate whether geothermal lithium extraction can be scaled commercially. The 2028 production target will now depend on successful construction, commissioning and reliable performance across the integrated system.
