Vulcan Energy has secured approximately €104m ($121.8m) in grants for its Clean Lithium for Battery Cell Production project (Li4BAT).
The grants, provided by the German Federal Government and the states of Rhineland-Palatinate and Hesse, will support the industrial-scale production and processing of lithium as part of Vulcan’s phase one Lionheart Project in Germany.
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These funds are aimed at bolstering Germany’s and Europe’s critical raw materials supply chain, particularly for the electric vehicle (EV) battery industry.
The grants are divided into two segments: lithium raw materials production at Vulcan’s Geothermal Lithium Extraction Plant in Landau, Rhineland-Palatinate, and lithium hydroxide processing at the Central Lithium Plant in Frankfurt, Hesse.
Vulcan Energy managing director and CEO Cris Moreno said: “We welcome this strong, tangible support from the German Federal Government, and the state governments of Rhineland-Palatinate and Hesse. The Li4BAT grant will enable our project to supply sustainable, domestically sourced lithium to the German and European battery EV markets.”
The Li4BAT initiative is expected to decarbonise the lithium supply chain, aligning with the sustainability objectives of the Lionheart Project.
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By GlobalDataThe grants form part of Vulcan’s financing package for the Lionheart Project, which also includes a €100m grant for renewable heating and a financing envelope of up to €500m approved by the European Investment Bank.
The disbursement of the Li4BAT grants is contingent upon several conditions.
These include finalising the overall phase one financing package by 1 September 2025, starting construction by January 2026 and completing the Raw Materials Fund (RMF) equity investment by 31 March 2026.
Vulcan is currently in negotiations for a €150m investment from the RMF, which is expected to be the “final cornerstone” of the phase one Lionheart financing in the second half of 2025.
The Li4BAT grants will be allocated on a pro rata basis over a period of 36 months, commencing with eligible expenditures, starting this October.
Cris added: “Lithium is the lifeblood of the energy transition and for EV production and is crucial to transitioning Germany and Europe’s auto industry into the electric age. We look forward to providing further updates on the progress of the project, including planned completion of the overall financing package and start of construction, in the coming months.”
In December, Vulcan launched a €100m placement to finance the start of phase one of the Lionheart Project.
