Vulcan Energy Secures €140 Million Lithium Technology Deal with JordProxa

About Vulcan Energy Resources Ltd

Vulcan Energy Resources Limited (ASX: VUL) is an Australian-German renewable energy and lithium developer pioneering the world’s first carbon-neutral lithium production in the heart of Europe. The company’s flagship Lionheart Project, located in the Upper Rhine Valley Brine Field across Germany and France, integrates renewable geothermal energy generation with lithium extraction, creating a sustainable, vertically integrated supply chain for the European electric-vehicle industry.

Vulcan’s vision is to decarbonise the battery-metal supply chain by harnessing naturally heated brines to produce lithium hydroxide with zero fossil-fuel input. This approach positions the company as a key enabler of the EU’s clean-energy transition and strategic independence in critical minerals.

In its latest announcement, Vulcan confirmed the signing of a ~€140 million contract with JordProxa, marking a pivotal step toward construction of the Phase One Lionheart Project. The partnership represents a convergence of two Australian engineering leaders delivering cutting-edge clean-tech infrastructure in Europe.

Strategic Partnership and Contract Scope

Under the newly executed agreements, JordProxa will supply and integrate the core process units for the lithium extraction and conversion circuits. This includes adsorption-type direct lithium extraction (A-DLE) systems at Vulcan’s Lithium Extraction.

Plant (LEP) in Landau, and advanced purification and crystallisation units at the Central Lithium Plant (CLP) within Frankfurt’s Industrial Park Höchst.

The integrated scope spans design, fabrication, modularisation, delivery, and commissioning of the core process equipment required to transform lithium-rich brines into high-purity lithium hydroxide monohydrate (LHM) — a crucial precursor for battery-grade cathode materials.

Technology and Sustainability Focus

JordProxa brings over 50 years of global experience in advanced water treatment, evaporation, and crystallisation systems — technologies central to the production of ultra-pure battery materials. Its modular plant solutions will form the foundation of Vulcan’s closed-loop lithium and energy system, designed to recycle process water and minimise environmental impact.

The Lionheart Project will utilise Vulcan’s proprietary VULSORB technology, enabling the selective capture of lithium ions from hot geothermal brines. This process not only reduces chemical consumption and waste generation but also integrates geothermal power generation, allowing the entire operation to run on renewable energy produced onsite.

Once operational, the Lionheart facility is expected to supply enough battery-grade lithium hydroxide for approximately 500,000 electric vehicles per year, while exporting surplus renewable electricity into Germany’s grid — a model that exemplifies the synergy between critical-mineral extraction and clean-energy generation.

Project Overview and Industrial Impact

The Lionheart Project is strategically located in one of Europe’s most advanced industrial and automotive regions, enabling direct supply to major original equipment manufacturers (OEMs) and battery producers. Phase One comprises three integrated facilities: the Lithium Extraction Plant (LEP) at Landau, which focuses on adsorption-type direct lithium extraction (A-DLE) and purification of lithium-rich brines; the Central Lithium Plant (CLP) in Frankfurt, specialising in the crystallisation and conversion of lithium hydroxide monohydrate; and a renewable power generation network that harnesses geothermal energy to power extraction and conversion processes. Together, these operations form the backbone of Vulcan’s plan to establish a carbon-neutral lithium ecosystem, reducing Europe’s reliance on imported, high-emission lithium sources from South America and China. Aligned with the European Union’s Critical Raw Materials Act, Vulcan’s vertically integrated model positions it as a key contributor to the region’s clean-energy security framework and industrial decarbonisation objectives.

Contract Structure and Safeguards

The agreements between Vulcan and JordProxa include comprehensive performance guarantees, liquidated damages clauses, and technical assistance provisions to ensure timely delivery and operational reliability. JordProxa will provide advance payment, performance, and warranty bonds to mitigate Vulcan’s cost exposure, supported by a fixed-price framework for the majority of the scope.

A cost-plus arrangement applies to the A-DLE equipment packages, valued at approximately €32 million, reflecting the complexity and innovation inherent in the process design. Both parties have agreed on structured payment milestones aligned with equipment delivery and installation schedules.

Industry and Market Context

Europe’s accelerating shift toward electric vehicles and domestic battery manufacturing has created urgent demand for locally sourced, sustainable lithium. With traditional suppliers facing environmental and geopolitical challenges, Vulcan’s geothermal-lithium approach offers a low-carbon, low-cost alternative.

By co-producing renewable heat and power, Vulcan’s operations align directly with the European Green Deal and the EU’s 2040 decarbonisation targets. The Lionheart Project’s scale and sustainability credentials position it to become a flagship industrial model for clean-tech manufacturing and circular-economy integration in Europe.

Outlook

Vulcan remains on track to finalise project financing and offtake agreements by late 2025, paving the way for construction commencement. The partnership with JordProxa represents a significant de-risking milestone and demonstrates investor confidence in Vulcan’s technology and execution strategy.

As construction advances, Vulcan aims to deliver the world’s first zero-carbon lithium hydroxide operation, establishing a benchmark for responsible critical-minerals development.