Vulcan Energy has secured a $2.56 billion financing package to build what is set to become Europe’s largest lithium production project, marking a major step forward for the region’s electric-vehicle supply chain. The funding will enable construction of the Lionheart lithium project in Germany to begin immediately, after multiple years of delays linked to fluctuating lithium prices and weakened investor appetite.
The Australia-listed company — backed by mining magnate Gina Rinehart — plans to produce around 24,000 tonnes of lithium hydroxide annually during the project’s first decade, enough to supply battery material for approximately 500,000 electric vehicles per year. The financing package is one of the largest ever assembled for a European critical minerals project and includes support from the European Investment Bank, German and EU government agencies, five export credit agencies, and seven commercial banks.
As part of the package, Vulcan will raise up to €603 million in equity at a fixed price of €2.24 per share. The company has already secured long-term supply agreements with Stellantis, Umicore, and Glencore, with roughly 90% of the first decade of production already contracted, many of them either at fixed prices or under price-floor and price-ceiling structures.
Executive chair Francis Wedin confirmed that the board has taken a final investment decision, telling Reuters: “It’s fully funded and we will be putting shovels in the ground on Friday.”
Vulcan previously targeted first production in 2023, later shifting the date to 2025. The revised timeline now points to 2028. Earlier this year, the company ended its long-standing supply agreement with Renault to “free up” volumes for other buyers, while Stellantis remains both a major customer and one of Vulcan’s largest shareholders.
Lithium prices have dropped sharply since their peak above $70,000 per tonne in 2023, with lithium carbonate trading just below $10,000 per tonne at the end of October, according to Benchmark Mineral Intelligence — a decline that has challenged new project financing across the sector. Vulcan’s ability to secure such a substantial funding package is therefore considered a significant milestone for European battery-material independence.
