EIFO has participated in the financing of Vulcan Energy’s Phase One Lionheart Project, signing an export loan of EUR 100 million.
Located in the Upper Rhine Valley Brine Field (URVBF) in southwestern Germany, the Lionheart Project aims to establish Europe’s first integrated supply of sustainable lithium and renewable energy and heat for local communities.
Lionheart is classified as a Strategic Project under the EU’s Critical Raw Materials Act and is expected to substantially contribute to Europe’s local supply of lithium, a key component in electric vehicle batteries.
China currently dominates global lithium refining. With Vulcan’s Lionheart Project, Europe gains a new sustainable source that will manage every stage of the value chain from extraction to processing. This reduces dependency on imports and strengthens European supply security.
Peter Boeskov, Chief Commercial Officer at EIFO, said:
“We are pleased to support such a significant critical raw minerals project. Lionheart is a strategically important project which strengthens Europe’s supply chain and reduces its dependence on imports from China. It aligns with EIFO’s commitment to supporting green energy as well as European critical minerals independence. Lithium is essential for Europe’s energy and mobility transition, and the Lionheart Project provides Europe with a new sustainable source.”’
Vulcan Energy Managing Director and CEO, Cris Moreno, said:
"We are pleased with the participation of EIFO in the financing of our Lionheart Project, particularly given its focus on facilitating the global green transition. Lionheart is a lighthouse project that is set to deliver Europe’s first fully domestic and sustainable lithium value chain, and with EIFOs support, we now look forward to moving into the construction phase of the project."
Phase One Lionheart has a total debt package of just over EUR 1 billion from a consortium including the European Investment Bank (EIB), ABN AMRO, Unicredit, Natixis, ING, BNP Paribas, KommunalKredit, OCBC and four other export credit agencies from France, Canada, Italy, and Australia.
Long-term supply agreements in place
Vulcan’s integrated geothermal and lithium value chain extracts lithium chloride (LiCl) directly from naturally heated subterranean brine while simultaneously producing renewable geothermal energy for local communities and industry.
Vulcan’s geothermal lithium extraction process significantly reduces the current industry impact of lithium production, as it uses recycled water and green energy. Other methods of lithium extraction, by contrast, are CO₂-intensive, requiring energy-heavy mining or prolonged evaporation, and consumes vast amounts of water.
Lionheart will utilize both new and existing geothermal wells to maximize infrastructure efficiency and reduce its climate footprint. Vulcan Energy will build a central processing plant at Industriepark Höchst near Frankfurt, where all extracted lithium will be converted into lithium hydroxide monohydrate (LHM) for direct use in battery production for the European automotive industry.
Vulcan’s Phase One Lionheart aims to produce 24,000 tonnes of LHM per year—enough to supply batteries for about 500,000 electric vehicles 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.
Vulcan has already signed long-term supply agreements with major industrial players including Stellantis (global carmaker behind brands such as Opel, Peugeot, Jeep, and Fiat), LG Energy Solution (a leading lithium-ion battery manufacturer), Umicore (an international materials technology and recycling company), and Glencore (one of the world’s largest commodity and mining groups).
The lithium production facilities will be equipped with advanced monitoring, control and fire protection systems with Siemens technology forming the backbone of this part of the project. Siemens is intended to be the partner and supplier of these systems, from its factory in Odense, Denmark, that will form the backbone of Vulcan’s industrial supply chain, subject to the execution of appropriate full form documentation. Siemens involves several Danish subcontractors in producing these systems, which work by dispersing steam to extinguish fires without flooding or damaging critical equipment.
