Vulcan Energy has secured a €2.2 billion financing package to fully fund the construction and development of phase one of its Lionheart lithium and renewable project in Germany.
The funding will accelerate the construction of an integrated lithium and renewable energy project, targeting production capacity of 24,000 tonnes of lithium hydroxide monohydrate, enough for 500,000 electric vehicle batteries per year.
Securing the financing package has allowed the Vulcan board to take a final investment decision on phase one of Lionheart. The company expects to commence project execution in the next few days.
Vulcan Energy managing director and CEO Cris Moreno said the financing package will allow the company to shift into the execution phase for Lionheart.
“A lighthouse project for Europe, Lionheart is set to redefine lithium production, delivering Europe’s first fully domestic and sustainable lithium value chain.
“It will also provide a clean and reliable source of renewable energy for local communities and industries in Germany’s Upper Rhine Valley.”
Vulcan Energy is looking to commence first production in 2028. Lionheart has a fully contracted lithium offtake for the first 10 years of production with European-focused offtake partners.
As part of the financing package, Vulcan is undertaking a €603 million retail entitlement offer for 269 million new shares. The equity raising will be at a fixed price of €2.24 per new share.
The company is also undertaking a fully underwritten placement of new shares to raise €137 million. The company will issue 61 million new shares at an offer price of €2.24 per share.
The financing package includes €1.185 billion in senior debt funding from a 13-financier syndicate consisting of the European Investment Bank, seven commercial banks and five export credit agencies.
The Lionheart project has been identified as a strategic project under the European Commission’s Critical Raw Material Act.
