EIB Approves €250m for Europe’s First Renewable-Powered Lithium Project in Germany

The project is a major step toward reducing Europe’s heavy reliance on imported critical minerals and accelerating the energy transition in both transport and industry.

The European Investment Bank (EIB) has agreed to provide €250 million in financing for Vulcan Energy’s Phase One Lionheart Project in Germany’s Upper Rhine Valley—an ambitious €2 billion initiative that will establish Europe’s first fully integrated, battery-grade lithium supply chain powered by renewable geothermal energy. The project is a major step toward reducing Europe’s heavy reliance on imported critical minerals and accelerating the energy transition in both transport and industry.

A New Benchmark for Sustainable Lithium Production

The Lionheart Project will use a unique process to extract lithium from naturally heated geothermal brine. This innovative model enables Vulcan to produce lithium while simultaneously generating renewable heat and electricity, drastically lowering carbon emissions and eliminating the land-intensive footprint of traditional evaporation-pond extraction practices.

EIB Vice-President Nicola Beer hailed the project as a milestone for European industrial sovereignty. “Lionheart is Europe’s first project to combine Direct Lithium Extraction with renewable energy generation. It strengthens Europe’s sovereignty, supports the energy transition, and puts the Critical Raw Materials Act into practice,” she said.

Vulcan Energy CEO Cris Moreno stated that the EIB’s backing confirms the strategic value of developing a homegrown, low-carbon lithium supply chain, which will support local innovation, green jobs and Europe’s carbon-neutral ambitions.

Meeting Europe’s Future Lithium Needs

Lithium has been classified as both a critical and strategic raw material under the EU’s Critical Raw Materials Act. As the demand for electric vehicle batteries continues to surge, Europe faces a pressing need to secure stable and sustainable supplies.

Lionheart Phase One, located across Landau and Frankfurt-Höchst, aims to produce 24,000 tonnes of lithium hydroxide monohydrate (LHM) per year—enough to power 500,000 electric vehicles annually. Once operational in 2028, the project will supply approximately 12% of Europe’s projected lithium hydroxide demand for 2030, substantially reducing reliance on imports from regions with weaker environmental standards.

The project will scale up Vulcan’s proven technologies. Since April 2024, Vulcan’s Lithium Electrolysis Optimisation Plant (LEOP) has been producing high-purity lithium chloride, further refined into battery-quality LHM at the Central Lithium Electrolysis Optimisation Plant (CLEOP) in Frankfurt. Lionheart will transition these demonstration-scale systems into a full commercial operation.

A Model for Global Sustainable Raw Material Production

By integrating geothermal energy with lithium extraction, Vulcan’s technology represents a world-first for sustainable lithium production and positions Europe as a global leader in green mining innovation. The project’s scalable model has strong export potential and may become a blueprint for similar ventures worldwide.

Renewable Heat for the Community of Landau

Vulcan’s geothermal wells are already delivering renewable heat to EnergieSüdwest AG (ESW) in Landau. This clean energy feeds into the city’s district heating systems, replacing fossil fuels used for residential and commercial heating. The partnership highlights the dual benefits of geothermal projects: low-carbon industrial supply chains and community-level climate action.

Backed by EIB, Commercial Banks and Government Support

The EIB’s financing forms part of the bank’s Critical Raw Materials Strategic Initiative and is bolstered by the TechEU platform, which supports advanced European technologies.

A wide coalition of financial players is supporting Lionheart, including:

• Commercial lenders: ABN AMRO, BNP Paribas, ING, KommunalKredit Austria, Natixis, OCBC and Unicredit

• Export credit agencies: Bpifrance, Export Development Canada, Export Finance Australia, EIFO (Denmark), SACE (Italy)

• Public financing: €204 million in German government grants

• Equity investors: Germany’s raw materials fund (KfW-managed), Siemens, Hochtief, and Demeter’s Climate Infrastructure Fund

This combination of public and private financing underscores Lionheart’s strategic importance for European industry, climate policy and technological independence.

A Foundation for Europe’s Clean-Tech Future

By establishing a domestic, renewable-powered lithium supply chain, the Lionheart Project is set to play a central role in Europe’s transition to clean mobility, sustainable manufacturing and long-term strategic autonomy. It strengthens European industries while demonstrating that large-scale raw material extraction can align with environmental integrity and community benefit.