- Milestone for world first carbon neutral, integrated lithium and renewable energy project
- Lithium to be extracted from low impurity geothermal sub-surface brines
- Facility designed to produce both renewable, baseload geothermal energy and lithium chloride
- Civil construction activities include preparation and construction of key foundations
Vulcan Energy (ASX:VUL) has achieved a major milestone with the commencement of civil construction activities at the Lionheart 30MW geothermal power plant site in Germany.
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The power plant is a key component for a groundbreaking project that will be a combined geothermal and lithium extraction facility designed to produce both renewable, baseload geothermal energy and high-quality lithium chloride.
The start of civil activities follows early bulk earthworks on the site and precedes the next construction stage, which will see the erection of buildings and arrival of process equipment for assembly.
Civil construction activities include preparation and construction of key foundations and concrete works for the power plant buildings and equipment, and building out road infrastructure.
Vulcan MD and CEO, Cris Moreno, said Lionheart – the company’s first phase of production – is a lighthouse project for Europe’s energy and critical raw material resilience.
It involves the construction of an integrated lithium and renewable energy project targeting production capacity of 24,000 tonnes of lithium hydroxide monohydrate (LHM), enough for around 500,000 electric vehicle batteries per annum, with a co-product of 275 GWh of renewable power and 560 GWh of heat per annum for local consumers, over an estimated 30-year project life.
“We are delighted to move beyond preparatory bulk earthworks and into civil construction activities at our Lionheart geothermal power plant, an integral part of the Lionheart integrated lithium and geothermal project. By producing our own baseload heat and power, where excess heat will be sold to local consumers, Lionheart is able to deliver low-cost lithium production with significant insulation from high energy prices now and in the future,” Mr Moreno said.
“It is encouraging to see Lionheart project execution progress on time, and on budget – a great start with our project partners. Step by step, we are building cost-competitive lithium production for Europe, and we look forward to keeping our shareholders abreast of further progress as the project develops.”
Vulcan is building the world’s first carbon-neutral, integrated lithium and renewable energy business to decarbonise battery production.
Lithium is to be extracted from low-impurity geothermal sub-surface brines using Vulcan’s VULSORB technology. Naturally heated, the brine powers production and conversion of lithium to battery-quality material by creating a renewable energy co-product for use in operations, with surplus sold into the local energy market. This integration, technology and favourable brine chemistry collectively enable one of the lowest-cost lithium operations globally.
Mr Moreno said extraction is only the starting point. “Vulcan has reimagined mining using innovation to integrate and capture more of the value chain. Vulcan has made its positive final investment decision on Lionheart; construction is underway, offtake contracted, and further phases are in planning.”
VUL is up +1.54% to $2.63. Mkt cap $1.239B.
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