Vulcan Energy Resources has taken another step towards the production of lithium for electric vehicle batteries in Europe. The company has obtained a second lithium production licence as part of the Lionheart Project, the integrated lithium extraction and geothermal energy production project currently under construction in Germany’s Upper Rhine Valley.

The new concession, known as Ilka, is the second licence of its kind to be granted in the Upper Rhine Valley brine basin and in the German state of Rhineland-Palatinate. It adds to the previous licence obtained by Vulcan for the area known as LiThermEx.

Lithium for 500,000 electric vehicles a year

Lionheart represents the first phase of Vulcan’s commercial lithium production. The project is targeting a capacity of 24,000 tonnes per year of lithium hydroxide monohydrate (LHM), a raw material used in the production of lithium-ion batteries. According to the company’s estimates, this output would be sufficient for approximately 500,000 electric vehicle batteries per year.

The project also integrates lithium production with geothermal energy generation. Vulcan aims to produce approximately 275 GWh of renewable electricity and 560 GWh of heat per year as by-products, supplying local consumers. The project has an estimated operating life of around 30 years.

Licence valid until 2032

The Ilka commercial licence has an initial term of six years and will remain valid until 9 September 2032. Vulcan subsequently intends to consolidate the LiThermEx and Ilka concessions into a single lithium production licence, with a minimum term of 30 years, in line with the development plan for the Lionheart deposit.

The granting of the new licence therefore represents a significant administrative milestone for the project, as the company continues construction of the facilities.

First lithium expected in 2028

Vulcan’s CEO and Managing Director described the granting of the second licence as another milestone for Lionheart, highlighting the project’s continued progress towards its goal of becoming a European lithium producer. The company also confirmed that construction work is progressing according to schedule, with first production targeted for 2028.

For Europe’s electric vehicle industry, Lionheart forms part of the broader effort to develop a local battery raw materials supply chain, reducing reliance on imported lithium while integrating raw material production with renewable energy sources.

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