Vulcan in line for $196 million debt finance for sustainable lithium business

The Australian government agency Export Finance Australia has conditionally approved $196 million commitment to Vulcan Energy as part of their debt financing process for an integrated lithium and renewable energy project.

December 11, 2024 Ev Foley

Image: Vulcan Energy

Export Finance Australia (EFA) has conditionally approved $196 million (USD 125 million) commitment to Western Australia (WA) sustainable lithium business Vulcan Energy as debt financing process for Phase One of its Lionheart integrated lithium and renewable energy project.

The approval of the commitment is subject to completion of final due diligence and signing of legal documentation including an Australian export contract.

Vulcan Group Chief Financial Officer Felicity Gooding said the commitment from EFA is an important step towards the finalisation of its debt financing package.

“As an Australian and Frankfurt dual-listed company, the backing of Australia’s export credit agency further deepens the relationship between Australia and Germany, at a time when securing global supply chain security is paramount,” Gooding said.

“The Lionheart Project will build Australia’s sovereign capability in adsorption-type direct lithium extraction, the lowest cost form of lithium production.”

Vulcan Energy’s Phase One Lionheart integrated lithium and renewable energy project is located in the Upper Rhine Valley, Germany.
*Image: Vulcan Energy*

Vulcan Energy is developing an integrated renewable energy and lithium project in the Upper Rhine Valley, Germany, and aims to decarbonise the lithium supply chain for electric vehicles (EVs) while supplying local communities with renewable heat and power.

Lionheart is targeting production of 24,000 tonnes per annum of lithium hydroxide monohydrate (LHM), equivalent to enough LHM for roughly 500,000 electric vehicles per annum.

The company will supply key auto and battery makers in the European supply chain, including its fourth largest shareholder, Netherland-based automotive manufacturer Stellantis.

Stellantis and China’s Contemporary Amperex Technology Co., Limited (CATL) announced a joint venture (JV) on 10 December 2024, to build an all-new lithium iron phosphate (LFP) battery plant at Stellantis’ Spain site.

Vulcan is advancing its financing process, supported by France-headquartered BNP Paribas bank as financial advisor, following strong engagement throughout 2024 with the European Investment Bank, the Export Credit Agencies and commercial banks.

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