Vulcan Energy Secures Final Major Contract, Eyes 2028 Production Start

The final piece of the procurement puzzle for Vulcan Energy Resources’ landmark Lionheart lithium project has fallen into place. The company has inked a comprehensive technology and financing agreement with industrial giant Siemens AG, valued at approximately €40 million. This deal, which also sees Siemens become a minority investor, propelled Vulcan’s shares to the top of the ASX 200 gainers list.

Siemens will serve as the Main Automation Contractor, providing control and digitalization technology for three core sites: the lithium extraction plant in Landau, the central lithium plant in Frankfurt’s Industriepark Höchst, and the production well sites. Its scope includes process control systems, industrial networks, cybersecurity infrastructure, and building automation, leveraging its Xcelerator portfolio and digital twin technology.

Crucially, the partnership extends beyond a supply contract. Upon transaction close, Siemens Financial Services will join the strategic investor consortium as a minority partner alongside HOCHTIEF and Demea Sustainable Investment. Furthermore, Siemens facilitated the entry of the Danish Export and Investment Fund (EIFO) as an additional financing partner for the Lionheart consortium. A memorandum of understanding grants Siemens preferred automation supplier status through 2035, covering future project phases.

With this Siemens pact finalized, Vulcan has now signed all major supply contracts for Lionheart. The remaining key work contracts were sealed in the second half of 2025.

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The project, classified as strategic under the EU’s Critical Raw Materials Act, is central to Europe’s supply chain ambitions. It targets an annual production capacity of 24,000 tonnes of lithium hydroxide monohydrate, sufficient for roughly 500,000 electric vehicle batteries. Over a planned 30-year operational life, it will also generate 275 GWh of renewable power and 560 GWh of heat as by-products for local offtakers. Vulcan aims for Lionheart to meet around 12% of Europe’s projected lithium hydroxide demand in 2030, reducing import reliance.

Demand for the first phase is already secured through binding offtake agreements with Umicore, LG Energy Solution, Stellantis, and Glencore.

Construction is underway, with building permits for the two main plants granted in September and November 2025—a fact confirmed by the German Federal Ministry for Economic Affairs. The company operates pilot plants at Landau and Frankfurt-Höchst, which serve as a 1:50 scale reference for the full commercial facilities. Commercial production is slated to begin in 2028.

Investor focus now shifts to the financial discipline required during this build phase. Vulcan is set to release its Q1 2026 quarterly report on April 29, the first since the final investment decision in December 2025. In the previous quarter, the company reported an operational cash outflow of €7.2 million, primarily for personnel and project development. The upcoming report will be scrutinized for whether this burn rate remains sustainable as construction accelerates. Management will face further questions at the Annual General Meeting scheduled for May 28.