Vulcan Energy has delivered a compelling preliminary feasibility study (PFS) for Project Ludwig, its proposed second-phase integrated lithium chemical and geothermal heat development in Germany.
The PFS showcases that Project Ludwig is a repeatable execution model designed to cut costs and boost financial returns.
The study outlines a post-tax net present value (NPV) of €1.7 billion (AU$2.8 billion) and an internal rate of return (IRR) of 20.2 per cent over a 30-year operational lifecycle.
Located in the Ludwigshafen region of the URVBF, Project Ludwig is located approximately 60 km north of Vulcan’s first phase, Project Lionheart. Ludwig can use the same regional brine system, proprietary extraction platform, in-house drilling capability, permitting experience and delivery organisation.
By transferring technical, operational, and commercial learnings from Lionheart, Vulcan has slashed capital intensity by 15 per cent. Total capital expenditure is estimated at €1.26 billion, while operating costs sit in the industry’s lowest quartile at €4,101 per tonne of lithium carbonate equivalent (LCE).
Project Ludwig features a base case production target of 21,100 tonnes per annum of battery-grade lithium carbonate, complementing the lithium hydroxide output planned for Lionheart.
The operation will also co-produce 3,125 gigawatt-hours of renewable heat annually to power internal processing and supply local regional energy partners.
Vulcan CEO Cris Moreno described Project Ludwig as the company’s next step in unlocking value across its extensive European acreage.
“We’re applying the technical, operational and commercial blueprint of Lionheart to a second development area with similar resource and geological characteristics,” Moreno said.
“The growth potential of our assets is significant, and supports the potential for numerous future phase projects. We look forward to advancing Project Ludwig using our existing blueprint in the same brine field, with the same bankable lithium extraction technology.”
The study was supported by updated resource estimates, with Indicated Mineral Resources jumping 91 per cent to 1.25 million tonnes of LCE.
Vulcan has commenced asset-level financing strategies and strategic partner selection, aiming for a final investment decision after Lionheart’s successful start-up.
