Construction is now underway on Vulcan Energy’s flagship integrated geothermal and lithium production facility in Germany’s Upper Rhine Valley. The move follows the company’s final investment decision in December 2025, marking a pivotal shift from planning to physical execution for the ambitious venture.
A Financed and Permitted Project
The initiative, known as the Lionheart project, is backed by secured financing totaling €2.2 billion. With all major construction permits in hand, physical work has commenced across multiple sites. This includes the integrated facility in Landau and the central processing plant located in Frankfurt-Höchst. The company reported a successful production test at its first new well in January, providing an early operational boost.
Strategic Timing in Evolving Markets
The project launch coincides with favorable shifts in its core markets. In geothermal energy, a sector experiencing robust global growth, annual investments are projected to rise by approximately 20% through 2030. This surge is driven by demand for reliable, low-carbon power to complement intermittent wind and solar generation.
Concurrently, the lithium market is showing signs of a turnaround. After a period of oversupply, analysts anticipate a market rebalancing in 2026, supported by sustained demand from electric vehicle manufacturers and the energy storage sector. Europe’s strategic push to develop domestic battery supply chains adds further tailwinds, as the continent currently remains heavily reliant on lithium imports.
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A Dual-Purpose Design for a Regulated Future
A defining feature of the Lionheart project is its combined output of renewable geothermal power and battery-grade lithium hydroxide. This integrated model is strategically relevant ahead of the European Union’s mandate, effective January 2026, requiring CO₂ footprint labeling for batteries. The co-production approach is positioned to offer a potential competitive advantage in this new regulatory environment.
Upon completion, the facility is designed to produce 24,000 tonnes of lithium hydroxide annually. This output is estimated to be sufficient for batteries powering roughly 500,000 electric vehicles each year.
Execution Phase and Upcoming Milestones
With financing secured and construction initiated, focus now turns to project execution and timeline adherence. The multi-year build phase will involve further drilling campaigns and plant construction. Investors will be watching for projected quarterly figures for Q4 2025, scheduled for release on 26 March 2026. The company’s annual general meeting is set for 28 May 2026.
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