Frankfurt Groundbreaking Marks New Chapter for Vulcan Energy as €2.2 Billion Build Phase Begins

The first excavators have started rolling at Frankfurt’s Industriepark Höchst, where Vulcan Energy officially launched construction of its Lionheart lithium refinery on April 24. The ceremony, attended by Hesse’s Minister-President Boris Rhein, signaled the project’s transition from years of planning into physical execution — and with it, a fresh wave of scrutiny over how quickly the developer will burn through its recently secured war chest.

Vulcan now holds all necessary building permits for the first phase, which targets annual production capacity of 24,000 tonnes of lithium hydroxide — enough battery-grade material for roughly half a million electric vehicles. The facility will process lithium chloride extracted from geothermal brines beneath the Upper Rhine Graben, using on-site geothermal energy to pursue carbon-neutral output.

Siemens and Mersen Join the Supply Chain

The construction launch was accompanied by two significant industrial partnerships. Siemens has signed on as both technology partner and investor, securing a framework agreement worth approximately €40 million to serve as the main contractor for automation technology. The Munich-based group will also act as preferred supplier for future plants through 2035.

French industrial specialist Mersen, meanwhile, landed a multi-million-euro contract to deliver a dedicated system for recovering chlorine and energy from the production process — a move that bolsters the environmental credentials of the Frankfurt plant directly at source.

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Fully Booked Output and a €2.2 Billion Backstop

Every tonne of first-phase production has already been spoken for. Vulcan has locked in long-term offtake agreements with major automotive and battery players: Stellantis committed to 128,000 tonnes over ten years, Glencore to between 36,000 and 44,000 tonnes over eight years, LG Energy Solution to 31,000 tonnes over six years, and Umicore to 23,000 tonnes over six years.

The financial foundation for construction was laid in late 2025, when Vulcan secured a €2.2 billion financing package from 13 lenders, including the European Investment Bank. That capital cushion now faces its first real test as spending accelerates on the ground.

Cash Burn in the Spotlight

With the ceremonial spade work done, investor attention shifts to the numbers. Vulcan’s management will publish first-quarter results on April 29, and the market will be watching cost discipline closely. In the previous quarter, the developer reported an operating cash outflow of €7.2 million — a figure that will inevitably climb as the Lionheart build ramps up.

CEO Cris Moreno has set a target of 2028 for the start of commercial production. Between now and then, the company must simultaneously expand its extraction infrastructure in Landau and install specialized electrolysis equipment during 2026. The stock, currently trading at $2.30, has gained roughly 14 percent over the past month despite volatility of 114 percent — reflecting both optimism about operational progress and the high-risk nature of a project still years from generating revenue.