Vulcan Energy signs €879m conditional debt commitment letter for European lithium project
Australia- and Frankfurt-listed Vulcan Energy has signed an €879-million conditional debt commitment letter with Export Finance Australia and a group of seven commercial banks for the financing of Vulcan's Phase One Lionheart project.
The project is located in the Upper Rhine Valley Brine Field bordering Germany and France, is the largest lithium resource in Europe. Harnessing natural heat to produce lithium from subsurface brines and to power conversion to battery-grade material and using its in-house technology VULSORB, Vulcan is building a local, low-cost source of sustainable lithium for European electric vehicle batteries.
Vulcan estimates that the total project cost will be about €2.2-billion, including about €1.4-billion in capital expenditure.
The company plans to fund the project through a combination of debt financing at the project level, as well as equity financing at the project and company level.
Vulcan is seeking additional approvals from Export Development Canada and other export credit agencies to participate in the project financing, to reach a target total debt package of about €1.5-billion to €1.6-billion.
“The debt commitment letter is a significant step in our financing of the project, and we will continue to progress discussions over the coming period. We look forward to maintaining our momentum into next year as we aim to finalise the financing package," says Vulcan CFO Felicity Gooding.
With production slated to start in 2027, the Phase One Lionheart project is expected to produce 24 000 t/y of lithium carbonate equivalent.
Comments
Research Reports
Latest Multimedia
Showroom
Leading condition monitoring specialists, WearCheck, help boost machinery lifespan and reduce catastrophic component failure through the scientific...
VISIT SHOWROOM
John Thompson, the leader in energy and environmental solutions through value engineering and innovation, provides the following: design, engineer,...
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
