Vulcan Signs €110M EPC Deal for Geothermal Plant Producing 24,000 Tonnes Lithium Annually
Vulcan Energy has inked a €110 million fixed-price contract to build a geothermal power plant in Germany, a cornerstone for its Phase One Lionheart Project that aims to supply sustainable lithium and renewable energy for half a million electric vehicles annually.
- €110 million fixed lump-sum EPC contract signed with Turboden and ROM Technik
- Geothermal plant to produce 275 GWh renewable power annually alongside 24,000 tonnes lithium hydroxide
- Project supports approximately 500,000 electric vehicles per year
- Contract signing is a condition precedent to financing targeted for second half of 2025
- Recent approvals secured for land purchase and building permits in Landau, Germany
A Major Step for Sustainable Lithium and Renewable Energy
Vulcan Energy Resources has taken a significant stride forward in its ambitious Lionheart Project with the signing of a €110 million Engineering, Procurement, and Construction (EPC) contract. The agreement with a consortium of Turboden and ROM Technik sets the stage for the development of a geothermal power plant near Landau, Germany. This plant is designed to generate 275 GWh of renewable electricity annually, produced alongside 24,000 tonnes of lithium hydroxide; enough to power roughly 500,000 electric vehicles each year.
Innovative Technology and Strategic Partnerships
The geothermal power plant will harness Organic Rankine Cycle (ORC) technology, a proven method for converting geothermal brine heat into stable, baseload renewable energy. Turboden, an Italian firm under Mitsubishi Heavy Industries, brings extensive expertise in ORC systems, while Germany’s ROM Technik will oversee the technical building equipment and coordinate construction efforts. This collaboration ensures that the plant’s design, manufacturing, assembly, and commissioning meet rigorous performance standards.
Financing and Regulatory Milestones
The contract signing is a critical condition precedent to Vulcan’s financing package, which the company aims to finalise in the second half of 2025. This follows recent approvals from the City of Landau Council for land acquisition and building permits for the 30MW geothermal plant and electrical substation. These regulatory milestones clear the path for construction, underpinning Vulcan’s confidence in delivering a low-cost, sustainable lithium source for Europe’s burgeoning electric vehicle battery market.
Strategic Implications for Europe’s Battery Supply Chain
Vulcan’s integrated approach; producing lithium and renewable energy from the same geothermal brine source; positions the company uniquely in the European battery supply chain. The project not only addresses lithium supply security but also contributes climate-neutral power to the grid, supporting regional decarbonisation efforts. The recent exclusive lithium electrolysis technology supply agreement with NORAM Electrolysis Systems further strengthens the downstream processing capabilities of the Lionheart Project.
Looking Ahead
With construction expected to reach substantial completion by mid-2028, Vulcan Energy’s Phase One Lionheart Project is poised to become a flagship example of sustainable resource development. The company’s Managing Director, Cris Moreno, emphasises the milestone as a key enabler for delivering local, low-cost sustainable lithium and renewable energy, reinforcing Vulcan’s role in Europe’s clean energy transition.
Bottom Line?
Vulcan’s €110 million EPC contract marks a pivotal moment, but financing and execution will be the true tests ahead.
Questions in the middle?
- Will Vulcan secure the targeted financing by the end of 2025 to activate the contract?
- How will potential delays or cost adjustments impact the project’s timeline and economics?
- What role will Vulcan’s integrated lithium and renewable energy model play in Europe’s broader EV battery supply chain?
