Vulcan Energy Locks in Second German Lithium Licence as 2028 Production Nears

Vulcan locks in second lithium production licence as Lionheart construction stays on track

Vulcan Energy Resources has been granted its second lithium production licence for the Lionheart Project, with the Mining Authority of the German state of Rhineland-Palatinate issuing the licence designated Ilka. The grant marks another concrete regulatory milestone toward the company’s 2028 targeted first production, with construction and field development progressing to schedule.

The Ilka licence is the second of its kind granted in the Upper Rhine Valley Brine Field (URVBF) and the second in Rhineland-Palatinate. It follows Vulcan’s earlier lithium production licence for the LiThermEx 1 area, announced on 17 March 2026. The Ilka area covers Vulcan’s Landau geothermal production permit area, which is already producing renewable heat.

Cris Moreno, Managing Director and CEO

“Securing our second lithium production licence is another important achievement for Lionheart and further validates the progress we are making towards becoming Europe’s leading producer of strategic, low-cost lithium. We thank the Mining Authority in the state of Rhineland-Palatinate for their ongoing collaboration during this process. The Lionheart construction remains on track, and we look forward to providing our shareholders with further updates as we progress to targeted first production in 2028.”

For investors tracking permitting progress, two production licences now in hand — alongside construction already underway — materially reduces regulatory risk on the path to first production.

What the Lionheart Project is building toward

Lionheart is Vulcan’s first phase of commercial lithium and geothermal energy production, currently under construction in Germany’s Upper Rhine Valley Brine Field. Understanding what this project is targeting helps frame why each regulatory approval matters.

Lionheart’s production targets across its estimated 30-year project life include:

• 24,000 tonnes of lithium hydroxide monohydrate (LHM) per annum
• Enough for approximately 500,000 electric vehicle (EV) batteries per annum
• 275 GWh of renewable power per annum for local consumers
• 560 GWh of heat per annum for local consumers

Lithium hydroxide monohydrate is the battery-grade form of lithium used in EV cathodes. Producing it at scale in Germany positions Vulcan within the European EV supply chain rather than requiring manufacturers to source from outside the region.

The extraction method is central to the project’s economics. Lithium is drawn from geothermal brines deep below the Upper Rhine Valley using Vulcan’s industry-leading VULSORB® technology. Because those brines are naturally heated, the same process that extracts lithium also generates renewable energy as a co-product, which powers operations and is sold into the local energy market. This integrated model is what underpins the project’s targeted low-cost position.

Renewable heat co-production from geothermal brines is central to Vulcan’s cost structure, with the energy recovered during lithium extraction sold into local markets and used to power operations rather than being treated as a waste stream.

Each new production licence granted by German state authorities is a formal confirmation that Vulcan has satisfied the regulatory requirements to extract lithium commercially from a specific area. With two licences now secured, the regulatory foundation for Lionheart’s field development is expanding in step with construction progress.

Two licences, one development plan

The Ilka licence, valid for six years until 9 September 2032, is the second piece of a planned unified structure. Following the initial term, Vulcan intends to combine both the LiThermEx and Ilka licences into a single licence granted for a minimum of 30 years, consistent with the Lionheart Field Development Plan.

The Ilka grant follows the first lithium production licence secured for the LiThermEx 1 area, which established the regulatory precedent for commercial lithium extraction from the Upper Rhine Valley Brine Field under German state authority.

The table below summarises the two licences currently in place:

The Ilka area’s existing operational status adds a further layer of continuity. Renewable heat is already being produced under Vulcan’s Landau geothermal permit, meaning the infrastructure and operational presence in that area predates the lithium licence itself.

What comes next for Vulcan and Lionheart

The 2028 targeted first production remains on schedule, with construction and field development progressing accordingly. Beyond that, the licence consolidation pathway provides investors with a clear picture of how the project’s regulatory structure is expected to evolve over the long term.

Key milestones to watch:

1. Continued Lionheart construction progress toward 2028 targeted first LHM production
2. Licence consolidation into a single 30-year licence post-2032
3. Targeted first LHM production: 2028
4. Project Ludwig next-phase planning (a Preliminary Feasibility Study was announced on 3 September 2026)

Project Ludwig represents Vulcan’s next phase of production beyond Lionheart, though the company’s immediate focus remains delivering Lionheart to its 2028 production target. The securing of the Ilka licence, with the Landau area already operational in renewable heat, illustrates the step-by-step approach Vulcan is taking through Germany’s regulatory environment — each licence building toward the consolidated, long-duration structure the Lionheart Field Development Plan requires.

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