Vulcan Energy’s Ludwig PFS Delivers €1.7B NPV and 15% Lower Costs
Key Takeaways
- Project Ludwig PFS delivers a post-tax NPV8 of €1.73 billion and a post-tax IRR of 20.2% on an unlevered basis, with total development CAPEX of €1.26 billion — approximately 15% lower than Lionheart on an equivalent LCE capacity basis.
- Ludwig targets 21,100 tpa of battery-grade lithium carbonate over a 30-year operating life, with a lowest industry quartile C1 cost of €4,101/t LCE and annual average revenue of €563 million.
- Indicated Mineral Resources at Ludwig increased 91% from 655 kt LCE to 1,251 kt LCE, alongside a maiden Geothermal Resource of 193 PJ Indicated and 295 PJ Inferred classification.
- The integrated geothermal model generates 3,125 GWh/year of renewable heat, with the majority available for external sale at approximately €42 million/year in average heat revenue — a second revenue stream from the same brine resource.
- FID on Ludwig is contingent on Lionheart commencing commercial production, with strategic partner selection processes already under way and asset-level financing strategy initiated.
Project Ludwig PFS delivers improved economics and confirms Vulcan’s phased growth blueprint
Vulcan Energy Resources has completed its Preliminary Feasibility Study (PFS) for Project Ludwig, its proposed Phase Two integrated lithium and geothermal energy project in the Ludwigshafen region of Germany’s Upper Rhine Valley Brine Field (URVBF). The study confirms Ludwig as a blueprint-driven second phase built directly on the Project Lionheart foundation, delivering a post-tax NPV8 of €1.73 billion (at an assumed FID in 2029) and a post-tax IRR of 20.2%, on an indicative, unlevered basis — figures that reflect different study assumptions and effective dates from Lionheart and should not be interpreted as a like-for-like valuation comparison.
Total development CAPEX is estimated at €1.26 billion, approximately 15% lower than Lionheart on an equivalent LCE capacity basis, over a planned 30-year operating life producing 21,100 tpa of battery-grade lithium carbonate (Li₂CO₃).
Cris Moreno, Managing Director and CEO
“Project Ludwig represents the strategic next step in our phased development of the Upper Rhine Valley Brine Field. We’re applying the technical, operational and commercial blueprint of Lionheart to a second development area with similar resource and geological characteristics.”
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Key highlights at a glance
- Location: Ludwigshafen region, approximately 60 km north of Lionheart within the same URVBF brine system
- Production: 21,100 tpa battery-grade Li₂CO₃; 517 kt life-of-project
- Renewable heat co-production: 3,125 GWh/year for internal use and external sales; annual average heat revenue approximately €42 million/year
- OPEX: Lowest industry quartile at €4,101/t LCE
- Mineral Resource upgrade: Indicated Resources increased 91% from 655 kt LCE to 1,251 kt LCE
- Maiden Geothermal Resource: 193 PJ Indicated classification + 295 PJ Inferred classification
- Asset-level financing strategy commenced; strategic partner selection processes under way
The “design one, build many” strategy — what Project Ludwig means for investors
Vulcan’s stated ambition is to develop a new phase of production every 2–3 years across the URVBF, with each Final Investment Decision (FID) triggered by commencement of production in the preceding project. FID for Project Ludwig would be made after Lionheart commences production. Ludwig is not a speculative concept — it is a replication exercise, applying the same subsurface knowledge, proprietary extraction technology, in-house drilling capability, and permitting experience already established at Lionheart to a second development area where the brine and geology are expected to be materially the same.
Why Ludwig’s economics are expected to outperform Lionheart
The PFS indicates that Ludwig targets equivalent lithium production capacity to Lionheart with approximately 15% lower capital intensity and comparable operating costs, and generates a higher unlevered post-tax IRR on an indicative basis. The table below compares the two projects. Note that the NPV8 figures reflect different effective dates aligned with each project’s FID (Project Ludwig: assumed 2029; Lionheart: 2025) and different study assumptions — they are presented for indicative comparison only and should not be interpreted as a like-for-like valuation comparison.
| Metric | Project Ludwig | Project Lionheart | Difference |
|---|---|---|---|
| Product | Li₂CO₃ (lithium carbonate) | LHM (lithium hydroxide monohydrate) | Complementary products |
| Lithium production capacity | 21.1 kt/year Li₂CO₃ (21.1 kt/year LCE) | 24.0 kt/year LHM (21.1 kt/year LCE) | Equivalent LCE capacity |
| CAPEX at FID | €1,261m (real 2026) | €1,476m (real 2025) | ~15% lower development costs |
| Capital intensity | €59,770/t Li₂CO₃ | €61,500/t LHM (€69,995/t LCE) | ~15% lower on LCE basis |
| C1 cost (life of project) | €4,101/t Li₂CO₃ | €3,588/t LHM (€4,077/t LCE) | Comparable on LCE basis |
| Annual average revenue | €563m/year | €566m/year | Comparable |
| Pre-tax IRR (unlevered) | 25.0% | 15.6% | +9.4 percentage points |
| Post-tax IRR (unlevered) | 20.2% | 13.7% | +6.5 percentage points |
| Post-tax NPV8 | €1,727m (@ assumed FID 2029) | €1,152m (@ FID 2025) | Indicative only — not like-for-like |
Dual revenue from a single brine resource
The integrated model works by pumping geothermal brine from depth, extracting lithium using Vulcan’s proprietary VULSORB® adsorption-based direct lithium extraction (A-DLE) technology, and simultaneously utilising the heat contained in the brine. The resulting lithium chloride (LiCl) intermediate is converted into battery-grade Li₂CO₃ through a downstream process designed by JordProxa. A relatively small portion of the 3,125 GWh/year of renewable heat generated is consumed internally to support lithium processing, with the majority made available for sale to local customers — creating a second revenue stream from the same resource.
Ludwig’s Li₂CO₃ product complements Lionheart’s lithium hydroxide monohydrate (LHM) output, broadening Vulcan’s exposure across battery chemistries. Lithium carbonate plays an important role in lithium iron phosphate (LFP) batteries used in some electric vehicles and most battery energy storage systems (BESS), while lithium hydroxide remains key for high-nickel NCM cathode chemistries used in higher energy density vehicles.
Resource growth and development plan
Mineral and geothermal resource upgrades
- Indicated Mineral Resources: increased from 655 kt LCE to 1,251 kt LCE (+91%) at 155 mg/L Li
- Inferred Mineral Resources: increased from 2,128 kt LCE to 2,230 kt LCE (+5%) at 155 mg/L Li
- Maiden Geothermal Resource: 193 PJ Indicated classification + 295 PJ Inferred classification
- All Mineral Resources independently reviewed by GLJ Ltd. and reported under JORC (2012); Geothermal Resources reported under the Australian Geothermal Reporting Code (2010)
These resources are not Ore Reserves and do not have demonstrated economic viability.
Field development plan overview
- 14 production wells + 14 injection wells drilled from five well sites across the Ludwig and Therese licence areas
- Produced brine gathered through approximately 16 km of interconnected pipelines (the inter-connected pipeline and power network, or ICPP) and delivered to a central lithium production facility
- Lithium carbonate process design by JordProxa; facility integration and capital cost estimate by Worley
- 2.5-year construction period; 30-year operating life
- No material permitting constraints identified; project will be developed under the same German state regulatory framework already applied at Lionheart
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Funding strategy and next steps
Vulcan is targeting an asset-level financing strategy to advance Project Ludwig toward a future FID. The Company intends to bring in minority equity from strategic partners while maintaining a majority control position, seek project finance at FID, and pursue public funding support. FID on Ludwig is contingent on Lionheart’s successful construction and commencement of commercial production — both conditions must be met before a Ludwig FID can be taken. Strategic partner selection processes are under way.
The stated next steps are:
- Advance Project Ludwig into the next phase of project definition and optimisation, building on PFS outcomes and Lionheart experience
- Further develop the resource through seismic acquisition, subsurface evaluation, appraisal well drilling and testing
- Optimise the field development plan, including well placement, production strategy and reservoir management
- Progress engineering definition and cost estimation through the Definitive Feasibility Study (DFS)
- Continue commercial discussions on heat offtake and integration opportunities
- Advance Project Ludwig toward a future FID as Vulcan’s next potential growth development in the URVBF
Ludwig is positioned as a second long-life development platform for European battery materials and renewable heat supply, underpinned by Vulcan’s existing VULTEC/VULSORB® technology, in-house drilling capability through Vercana, and established stakeholder relationships — assets already developed and substantially de-risked through the Lionheart programme.
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