Vulcan Energy Produces Europe’s First Carbon-Neutral Lithium

About Vulcan Energy Resources Limited

Vulcan Energy Resources Limited (ASX: VUL) is pioneering the world’s first carbon-neutral, integrated lithium and renewable energy business, aiming to decarbonise battery production. Founded in 2018, the company’s flagship Lionheart Project, located in the Upper Rhine Valley Brine Field on the Germany-France border, hosts Europe’s largest lithium and geothermal resource and is recognised as a tier-one lithium project globally. Vulcan uses its proprietary VULSORB technology to extract lithium sustainably from sub-surface brines, leveraging natural geothermal heat for processing. This creates a low-cost, local source of battery-grade lithium to support Europe’s electric vehicle market with minimal environmental impact.

Growth Pipeline: Establishing Europe’s First Integrated Lithium Supply Chain

Vulcan Energy has achieved a monumental milestone in Europe’s renewable energy and battery production landscape. The company has successfully produced its first battery-quality Lithium Hydroxide Monohydrate (LHM) at its Central Lithium Electrolysis Optimisation Plant (CLEOP) in Frankfurt, Germany. This achievement is Europe’s first fully integrated production of battery-grade lithium, covering the entire process from raw material extraction to the final product.

This development forms the cornerstone of Vulcan’s Phase One “Lionheart” project, which targets the production of approximately 24,000 tonnes of LHM annually. This capacity equates to supporting around 500,000 electric vehicles (EVs) per year. Located in the Upper Rhine Valley Brine Field, Vulcan’s operations leverage a rich and sustainable geothermal resource base, integrating lithium extraction with renewable energy production.

The CLEOP milestone follows the success of Vulcan’s upstream Adsorption-type Direct Lithium Extraction optimisation plant (LEOP) in Landau, where high-purity lithium chloride is extracted from deep brine reservoirs. This vertically integrated approach underpins Vulcan’s strategy to provide Europe with a secure, cost-efficient, and sustainable lithium supply chain, reducing dependency on imported materials and enhancing Europe’s raw material independence.

Vulcan’s strategy revolves around creating a fully integrated lithium and renewable energy business, offering a local and sustainable solution to Europe’s growing demand for battery materials. The company’s unique integration of upstream lithium extraction and downstream processing ensures complete control over the supply chain, from raw material to battery-grade LHM.

This integrated approach enables Vulcan to maintain high product quality, minimise costs, and significantly reduce the carbon footprint of its operations. By utilising its proprietary VULSORB technology, Vulcan efficiently extracts lithium from sub-surface brines while harnessing geothermal heat for processing. This not only supports Europe’s transition to green mobility but also aligns with global sustainability goals.

Furthermore, Vulcan’s location in Central Europe places it near major automotive and battery manufacturers, including Stellantis, Renault, LG, and Umicore. This strategic positioning enhances cost competitiveness, shortens delivery times, and further reduces the environmental impact of its supply chain. The company’s long-term vision includes expanding production capacity to meet the increasing demand for EV batteries while maintaining its low-carbon operating model.

Industry Context: Meeting the Demand for Green Mobility

The global lithium market is experiencing rapid growth, driven by the rising demand for electric vehicles and renewable energy storage systems. Europe has emerged as a critical market for lithium due to its ambitious decarbonisation targets and significant investments in EV infrastructure. Vulcan’s Lionheart project is a direct response to these market dynamics, offering a sustainable and secure source of lithium for Europe’s burgeoning EV industry.

By producing lithium entirely within Europe, Vulcan addresses the region’s reliance on imported materials, many of which come from geopolitically sensitive areas. This aligns with the European Union’s objectives to strengthen raw material independence and reduce supply chain vulnerabilities. Vulcan’s innovative and scalable production model sets a benchmark for sustainable lithium extraction, positioning the company as a leader in the global transition to low-carbon energy solutions.

In addition to supporting the EV market, Vulcan’s operations contribute to Europe’s broader sustainability goals by establishing a green and cost-efficient supply chain. The Phase One integration of upstream and downstream processes represents a significant leap forward in the global lithium industry, combining innovation with environmental stewardship.