Vulcan advances Lionheart, founder moves to new role
Vulcan Energy (ASX: VUL) has advanced development of its Lionheart lithium project in Germany, progressing drilling and construction while securing another lithium production licence.
In H1 CY26, Vulcan successfully completed its fifth and sixth wells under the Lionheart field development plan and commenced drilling its seventh well as it works towards first production in 2028.
Construction activities also progressed across the integrated lithium and renewable energy development, including work on Vulcan’s geothermal power, lithium extraction and lithium processing facilities.
Following the reporting period, civil construction commenced at the project’s 30MW geothermal power plant in Landau.
Vulcan has also secured its second lithium production licence for Lionheart from the Mining Authority of the German state of Rhineland-Palatinate.
The six-year Ilka licence covers Vulcan’s Landau geothermal production permit area and follows the LiThermEx lithium production licence awarded earlier this year.
Vulcan plans to ultimately combine the two licences into a single production permit with a minimum 30-year duration.
Lionheart is targeting annual production capacity of 24,000t of lithium hydroxide monohydrate, alongside up to 275GWh of renewable electricity and 560GWh of renewable heat.
The development is backed by a €2.2b financing package, with Vulcan receiving its first strategic investor equity drawdown following the end of the half.
Capital expenditure outflows totalled €168m during the six months to June 30, primarily reflecting development of Lionheart, including drilling, the Organic Rankine Cycle power plant and engineering and procurement activities across the lithium extraction and chemical plants.
Vulcan reported a €51.8m net loss for the half, widening from €30.7m in the prior corresponding period, while revenue declined from €4.1m to €2.3m.
The results also coincide with a leadership change at Vulcan, with founder Francis Wedin transitioning from executive chair into what the company described as a “dedicated founder consultancy role” from September 12.
Mr Wedin will focus on growth and business development, particularly Vulcan’s broader geothermal and lithium resource pipeline and its VULTEC technology division.
Current deputy chair and lead independent director Angus Barker will become non-executive chair as part of Vulcan’s long-term board succession plan.
