Vulcan Energy Initiates Lithium Chloride Production in Germany with Geothermal Energy
Vulcan Energy has announced the commencement of lithium chloride production at its extraction plant in Germany, marking a pivotal step towards the creation of battery-grade lithium hydroxide. This development represents a significant advancement in sustainable lithium production, utilizing geothermal energy for the process.
Cris Moreno, the Chief Executive Officer of Vulcan Energy, highlighted the uniqueness of the project, noting it as the first instance of lithium being produced locally in Germany, extracted directly from beneath the surface. The company has secured over 1,000 kilometers of land in the Upper Rhine Valley region for this purpose, aiming to harness super-hot lithium-rich brine from underground reservoirs to generate electricity and extract lithium.
Amid the European Union's ambitious goals for securing lithium, cobalt, and other critical metals for its green transition, challenges such as funding shortages, high energy costs, and local opposition have emerged. In response, the German government has established a €1.1 billion investment fund to ensure the nation's access to essential raw materials for technological and eco-friendly projects.
Vulcan Energy, which is listed in Australia and Frankfurt, boasts offtake agreements with major automakers, including Volkswagen, Stellantis, and Renault. The company reported that its lithium extraction optimization plant in Landau, Germany, has achieved lithium extraction efficiency rates consistently above 90%, aligning with its operational expectations and financial modeling.
Plans are in place to transform the lithium chloride output into battery-grade lithium hydroxide at Vulcan's new conversion facility in Frankfurt later this year. Moreno indicated that funding efforts are underway for Vulcan's first large-scale industrial plant, projected to produce 24,000 tonnes of lithium hydroxide annually—enough to support the production of 500,000 electric vehicles—by the end of 2026.
Vulcan Energy is in the final stages of securing financing, expecting to finalize the process within the next four to five months. In February, the company announced it had passed a preliminary examination by the European Investment Bank (EIB) for potential debt financing up to €500 million ($537.15 million), showcasing the significant interest and support for sustainable lithium production initiatives in Europe.
