Vulcan Energy receives grants from German governments

The grants are funded by the German Federal Government and the states of Rhineland-Palatinate and Hesse under the lead of the Federal Ministry of Economy and Energy (BMWE) within the Temporary Crisis and Transition Framework (TCTF) scheme by the EU, together with the Resilience and Sustainability of the Battery Cell Production Ecosystem funding of the German government. Li4BAT will be applied towards building industrial-scale lithium production and processing, which is part of Vulcan’s Phase One Lionheart Project.

Key highlights:

• The grants consist of two parts: lithium raw materials production, part of Vulcan’s Geothermal Lithium Extraction Plant (G-LEP) in Landau, Rhineland-Palatinate, and a lithium hydroxide processing part at the company’s Central Lithium Plant (CLP) in Frankfurt, Hesse.
• Li4BAT is designed to assist with building Germany’s and Europe’s critical raw materials supply chain resilience, to supply lithium raw materials and battery-quality lithium hydroxide to service the European battery EV industry.
• The grants also recognise the substantial decarbonisation of the lithium supply chain targeted by the company, due to the strong sustainability credentials of the project.
• The Li4BAT grants will form part of the company’s financing package for the project, which includes a complementary €100 million grant for the renewable heating part of the project, and a financing envelope of up to €500 million approved by the Board of the European Investment Bank.
• The disbursement of the Li4BAT grants are subject to certain conditions: finalisation of the overall Phase One financing package by 1 September 2025, commencing construction by January 2026, and the planned completion of the Raw Materials Fund (RMF) equity investment, managed by KfW, by 31 March 2026. The company is in negotiations for a €150 million investment from the RMF, which is planned to form the final cornerstone of the Phase One Lionheart financing in 2H25.
• The Li4BAT grant will be disbursed pro rata over 36 months following eligible expenditure from 1 October 2025.

Cris Moreno, Vulcan Energy Managing Director and CEO, comments:

“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.

“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.”

Read the article online at: https://www.globalminingreview.com/finance-business/23072025/vulcan-energy-receives-grants-from-german-governments/