Vulcan Secures Second German Lithium Licence
Vulcan Secures Second German Lithium Licence
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Key Points
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The Ilka licence was issued by the Mining Authority of Rhineland-Palatinate and covers Vulcan’s Landau geothermal production permit area, which is already producing renewable heat.
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Project Ludwig’s preliminary feasibility study estimates a post-tax net present value of €1.73 billion and a 20.2% post-tax internal rate of return, based on an assumed lithium carbonate price of €20,588 per tonne.
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Ludwig is projected to produce about 517,000 tonnes of lithium carbonate over its operating life and generate approximately 3,125 GWh of renewable heat annually.
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The articles note that Vulcan’s geothermal-brine model avoids conventional hard-rock mining and crushing, but depends on reliable well performance, brine chemistry, reinjection and direct lithium extraction technology at commercial scale.
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Vulcan’s shares fell 5.80% to A$2.36 on the day of the licence announcement, according to Kalkine.
Vulcan Energy has secured a second lithium production licence in Germany's Upper Rhine Valley, clearing the path toward its 2028 production target. Vulcan Energy obtained the six-year Ilka licence from the Mining Authority of Rhineland-Palatinate, valid through September 2032. The company plans to merge this with its existing LiThermEx permit into a single long-term authorization.
The Lionheart project will extract lithium from underground brines using geothermal heat, targeting 24,000 tonnes of lithium hydroxide annually. Vulcan also unveiled Project Ludwig, a second development 60 kilometers north that would cost €1.26 billion and produce 21,100 tonnes of battery-grade lithium carbonate yearly. Together, the projects represent a regional European lithium and clean energy platform.
German Lithium Licenses Advance Toward 2028 Production
The Ilka licence covers Vulcan's existing Landau geothermal production permit area, which already generates renewable heat for local consumers. The Mining Authority of Rhineland-Palatinate issued the six-year license, removing a major regulatory hurdle. Vulcan now holds two separate permits that it will consolidate into one long-term agreement before production begins.
Lionheart is designed to produce 24,000 tonnes of lithium hydroxide monohydrate annually, alongside 275 GWh of renewable power and 560 GWh of heat for regional use. The geothermal-brine extraction model avoids conventional hard-rock mining and crushing. Success depends on reliable well performance, stable brine chemistry, safe reinjection, and commercial-scale direct lithium extraction technology.
Project Ludwig: A €1.26 Billion Second Development
Vulcan outlined Project Ludwig, a proposed second facility located 60 kilometers north of Lionheart. The project requires €1.26 billion in capital investment and aims to produce approximately 21,100 tonnes of battery-grade lithium carbonate annually over 30 years. A preliminary feasibility study projects 517,000 tonnes of lithium carbonate over the mine's operating life.
The feasibility study estimates a post-tax net present value of €1.73 billion and a 20.2% post-tax internal rate of return. These figures assume a lithium carbonate price of €20,588 per tonne. Ludwig would also generate approximately 3,125 GWh of renewable heat annually for local communities and industry.
Market Reaction and European Lithium Strategy
Vulcan's shares fell 5.80% to A$2.36 on the day the Ilka licence was announced, according to Kalkine. The decline suggests investor caution despite the regulatory milestone. Both projects rely on unproven commercial-scale direct lithium extraction from geothermal brines—a technology that has not yet demonstrated large-scale success.
The two projects position Vulcan as a key player in Europe's effort to build domestic lithium supply. Lionheart targets 2028 production, while Ludwig remains in the feasibility phase. Together, they would deliver roughly 45,000 tonnes of battery-grade lithium annually, supporting European electric vehicle and battery manufacturers independent of Asian suppliers.
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