Europe has taken a decisive step toward strengthening its raw material security with the development of Vulcan Energy’s €2 billion Lionheart Project in Germany’s Upper Rhine Valley. Backed by a €250 million loan from the ), the initiative aims to establish Europe’s first integrated, battery-quality lithium supply chain based on geothermal brines—positioning the region as a leader in sustainable lithium production.

Lionheart is set to become a cornerstone of Europe’s electric vehicle and battery value chain. As the first project in Europe to combine Direct Lithium Extraction (DLE) with renewable and affordable heat and power, it represents a new model for low-carbon, domestic raw material production. The project is also strategically aligned with the EU’s Critical Raw Materials Act, which seeks to reduce dependency on imported minerals essential for the energy transition.

A new standard for sustainable lithium

“Lionheart is Europe’s first project to combine Direct Lithium Extraction with renewable energy generation, setting a new standard for sustainable lithium,” said Nicola Beer, Vice-President of the EIB. She emphasized that securing a strategic supply of lithium will reinforce Europe’s sovereignty and supply chain resilience while supporting the decarbonisation of key sectors.

Vulcan’s process extracts lithium from naturally heated geothermal brine while generating renewable heat and electricity, significantly reducing carbon emissions and environmental impact compared with conventional lithium mining and evaporation ponds.

“The EIB’s participation underlines the significance of developing a European, sustainable lithium supply chain while supporting local innovation, employment, and a carbon-neutral future,” added Vulcan Energy’s Managing Director and CEO, Cris Moreno.

Phase One: Scaling up a proven technology

Located across Landau and Frankfurt-Höchst, Phase One of Lionheart is designed to produce 24,000 tonnes of lithium hydroxide monohydrate (LHM) per year—enough to supply batteries for 500,000 electric vehicles annually. Commercial construction will last around two and a half years, with production targeted to begin in 2028.

By 2030, Lionheart is expected to provide around 12% of Europe’s projected demand for lithium hydroxide, significantly reducing the region’s reliance on imports.

Vulcan has already demonstrated its technology at optimisation-plant scale. Since April 2024, its Lithium Electrolysis Optimisation Plant (LEOP) has produced high-purity lithium chloride from geothermal brine, which is then refined into battery-grade LHM at the Central Lithium Electrolysis Optimisation Plant (CLEOP) in Frankfurt. Phase One will scale these facilities to full commercial capacity.

A blueprint for global sustainable lithium production

The project’s integrated model—DLE paired with renewable heat and power production—positions Europe as a pioneer of climate-friendly lithium sourcing. Its potential exportability makes Lionheart a reference point for similar initiatives worldwide.

In addition to supplying lithium, Vulcan’s geothermal system provides renewable heat to the city of Landau through EnergieSüdwest AG (ESW), reducing fossil fuel consumption for district heating.

The Lionheart Project is backed not only by the EIB but also by a consortium of commercial banks—including ABN AMRO, BNP Paribas, ING, KommunalKredit Austria, Natixis, OCBC and UniCredit—as well as export credit agencies from France, Canada, Australia, Denmark and Italy. This wide participation highlights strong confidence in Vulcan’s geothermal-based business model and the broader European clean-technology sector.

Earlier in 2025, the German government awarded Vulcan Energy two grants totalling €204 million. Additional equity has been secured from the German Federal Government’s raw materials fund, managed by KfW, alongside contributions from Siemens, Hochtief and Demeter’s Climate Infrastructure Fund.