Vulcan Energy Resources Limited (ASX: VUL), a pioneer in sustainable energy solutions, is focused on producing carbon-neutral lithium and renewable energy to support the global transition to clean technologies. Listed on the Australian Securities Exchange, Vulcan is leveraging its proprietary VULSORB® technology to extract lithium from geothermal brine, primarily targeting the European electric vehicle (EV) battery market. The company operates the Lionheart Project in Germany, home to the largest lithium resource in Europe, and is committed to decarbonising battery production while delivering long-term shareholder value.
Vulcan Energy Resources Limited, a trailblazer in carbon-neutral lithium and renewable energy, has commenced its Share Purchase Plan (SPP) for eligible shareholders in Australia and New Zealand. This initiative is part of a larger equity-raising strategy to fund Phase One of its flagship Lionheart Project in Germany’s Upper Rhine Valley Brine Field. With the goal of creating the world’s first carbon-neutral lithium production and renewable energy business, Vulcan is setting a global precedent for sustainable resource development. The company’s efforts support the growing demand for ethical lithium production in Europe, particularly for electric vehicle (EV) battery manufacturing.
Vulcan’s SPP provides eligible shareholders the opportunity to purchase shares valued at up to $30,000 per individual at a price of $5.85 per share. This represents an 11.9% discount to the closing price on 10 December 2024 and an 8.4% reduction to the volume-weighted average price over the preceding 30 trading days. The SPP closes at 5:00 pm AEDT on 20 January 2025, with shares scheduled for issuance on 28 January. Combined with $164 million raised through a recent institutional placement, the SPP aims to generate a total of $184 million to drive the next stages of Vulcan’s Lionheart Project.
The funds raised through the SPP and earlier placement will play a critical role in advancing the Lionheart Project, enabling Vulcan to execute key milestones. A substantial portion of the capital will be allocated to the Field Development Plan, which involves mobilising drilling rigs and initiating the first production well. This is a cornerstone of Vulcan’s geothermal energy and lithium extraction operations. Additionally, funds will be used to procure advanced equipment for geothermal energy production and lithium processing facilities, ensuring that these adhere to the highest efficiency and sustainability standards.
The project will also see the initiation of Engineering, Procurement, and Construction (EPC) contracts to build essential infrastructure, including geothermal energy plants and lithium extraction facilities. Operational expenditures will support on-site activities, such as land acquisition and rigorous project management, ensuring timely and effective execution. Vulcan’s unique approach integrates lithium extraction with renewable energy generation, reinforcing its commitment to sustainable operations and aligning with Europe’s stringent Environmental, Social, and Governance (ESG) frameworks.
The Lionheart Project is positioned to meet the surging demand for sustainable lithium, a critical material for the booming European EV market. Vulcan’s innovative use of geothermal energy for lithium extraction significantly reduces environmental impact
compared to traditional mining methods. This aligns with global ESG priorities and the growing regulatory focus on green innovation. By providing a local, ethically sourced lithium supply, Vulcan is helping European automakers meet their sustainability targets and advancing the continent’s shift towards a decarbonised economy.
Vulcan’s strategic dual focus on lithium extraction and renewable energy production establishes it as a leader in the global sustainable energy revolution. Its proprietary VULSORB® technology enables efficient lithium recovery from geothermal brines with minimal water use, offering a more sustainable alternative to conventional mining. With the Lionheart Project at the forefront, Vulcan is well-positioned to capitalise on the rising demand for ethical lithium production in Europe.
The SPP not only reflects Vulcan’s transparent shareholder engagement but also its dedication to long-term growth and sustainability. As European automakers accelerate EV production, Vulcan’s localised and environmentally friendly approach ensures it remains a key supplier to the market. Through innovative technology and a commitment to decarbonisation, Vulcan is setting a new standard for sustainable resource development and solidifying its role in the future of the green energy sector.
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