A €2 billion project to build an integrated, battery-quality, lithium supply chain based on geothermal brines is being backed by €250 million in funding by the European Investment Bank (EIB). This first-of-its-kind project in Europe could produce enough lithium to support the production of 500 000 electric vehicles.
The Phase One Lionheart Project, which is being developed in Germany’s Upper Rhine Valley by Vulcan Energy is aimed at reducing Europe’s reliance on imported critical mineral raw materials, as well as supporting the decarbonisation of transport and industry.
The project is based on Vulcan’s process technology which extracts lithium from naturally heated brine while at the same time generating renewable heat and power. Vulcan Energy says that this process reduces carbon emissions and surface impact when compared with conventional methods of lithium extraction and evaporation ponds.
Vulcan Energy’s technology has already been proven at ‘optimisation plant-scale’, with its Lithium Extraction Optimisation Plant producing high-purity lithium chloride from geothermal brine since April 2024. The lithium chloride is processed into battery grade lithium hydroxide monohydrate (LHM) at the Central Lithium Extraction Optimisation Plant, located in Frankfurt. The Phase One project will scale these facilities for commercial operation.
In addition, deep geothermal wells allow Vulcan Energy to supply renewable heat to a local municipal energy provider, in Landau. This heat feeds into the city’s district heating systems, cutting the use of fossil fuels for the heating of buildings and water.
Phase One of the project will produce 24 000 tonnes of LHM each year. Construction is set to start shortly and take around two and half years to complete. Production is scheduled to start during 2028. The project is expected to provide some 12% of Europe’s demand for lithium hydroxide by 2030, helping to reduce European industry’s dependence on imports. The project also supports the objectives of the European Union’s Critical Raw Materials Act.
As well as the EIB, the project is backed by commercial lenders ABM AMRO, BNP Paribas, ING, KommunalKredit Austria, Natixis, OCBC and Unicredit, as well as export credit agencies from around the world including Canada and Australia. Germany’s government is also supporting the project.
“Lionheart is Europe’s first project to combine Direct Lithium Extraction with renewable energy generation, setting a new standard for sustainable lithium,” said Nicole Beer, Vice President of the EIB. “With innovative geothermal technology, domestic production, and strong public-private cooperation, the project puts the EU’s critical Raw Materials Act into practice and reinforces Europe’s supply chain resilience,” Beer added.
The EIB adds that Vulcan Energy’s technology positions Europe as a leader in sustainable lithium production. And combining lithium extraction with renewable energy generation means the project’s technology has strong export potential.
Further reading:
- Critical minerals: UK unveils plan to boost production
- International forum expands cooperation on critical raw materials
- Battery company plans new £1 billion gigafactory
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