The future V-Lion batteries to be produced at Frankfurt-Höchst, Germany (source: Vulcan Energy)
Vulcan Energy is set to receive a total of EUR104 million from two grants by the Federal Government of Germany to support their geothermal lithium project.
Vulcan Energy (Vulcan) has announced the approval of two grants from the German government totaling up to EUR 104 million to support the company’s Clean Lithium for Battery Cell Production (Li4BAT) funding project.
The grants are funded by the German Federal Government and the states of Rhineland-Palatinate and Hesse under the lead of the Federal Ministry of Economy and Energy (BMWE) within the Temporary Crisis and Transition Framework (TCTF) scheme by the European Union, together with the Resilience and Sustainability of the Battery Cell Production Ecosystem funding of the German government.
Li4BAT will be applied towards building industrial-scale lithium production and processing, which is part of Vulcan’s Phase One Lionheart Project. The project is designed to assist with building Germany’s and Europe’s critical raw materials supply chain resilience, to supply lithium raw materials and battery-quality lithium hydroxide to service the European battery EV industry. The Lionheart Project aims to produce battery-grade quality lithium from naturally heated geothermal brine in the Upper Rhine Valley.
The disbursement of the Li4BAT grants are subject to certain conditions:
- finalisation of the overall Phase One financing package by 1 September 20253,
- commencing construction by January 2026, and
- the planned completion of the Raw Materials Fund (RMF) equity investment, managed by KfW, by 31 March 2026.
The Company is in negotiations for a €150m investment from the RMF, which is planned to form the final cornerstone of the Phase One Lionheart financing in H2 2025. The Li4BAT grant will be disbursed pro rata over 36 months following eligible expenditure from 1 October 2025.
“We welcome this strong, tangible support from the German Federal Government, and the state governments of Rhineland-Palatinate and Hesse. The Li4BAT grant will enable our Project to supply sustainable, domestically sourced lithium to the German and European battery EV markets,” commented Cris Moreno, Managing Director and CEO of Vulcan Energy.
“Lithium is the lifeblood of the energy transition and for EV production and is crucial to transitioning Germany and Europe’s auto industry into the electric age. We look forward to providing further updates on the progress of the Project, including planned completion of the overall financing package and start of construction, in the coming months.”
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Source: Email correspondence