First project financing finalized: Vulcan Energy to extract battery-grade lithium from brine.
Lithium production will soon begin in Germany, specifically in the Palatinate region. That is the plan of Australian company Vulcan Energy, which has now announced that financing for the first phase of its project has been secured. Funding comes from European and German public institutions, commercial banks, and industrial partners. An additional €150 million is being provided by the German government’s raw materials fund, which is finally launching after numerous delays.
In the project’s initial phase, Vulcan aims to produce 24,000 tonnes of lithium hydroxide monohydrate (LHM) per year, enough for roughly 500,000 electric vehicle batteries, according to the company. Construction of the commercial facilities is expected to begin in the coming days. Vulcan’s process involves pumping lithium-rich geothermal brine from beneath the Upper Rhine Valley. Using Direct Lithium Extraction (DLE), the lithium is separated from the brine. The geothermal heat serves a dual purpose: powering the extraction process and supplying renewable energy. Final processing into LHM will take place in Frankfurt, at Industriepark Höchst, one of the largest industrial sites in Europe.
Vulcan’s project has already been recognized as a strategic initiative by the EU under the Critical Raw Materials Act, allowing it to benefit from accelerated permitting procedures.
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