Vulcan Energy Resources Ltd (ASX:VUL, OTC:VULNF, ETR:VUL) has rallied strongly after signing a €110 million (A$179 million) engineering, procurement and construction (EPC) contract for its flagship Lionheart Project in Germany, a key step toward developing Europe’s largest integrated renewable energy and lithium operation.
The stock climbed 15.2% to A$5.76 in Friday trade, extending a 48.6% gain over the past month, as investors welcomed the progress on project delivery.
Major contract secured
The agreement is with a consortium of Turboden, part of Mitsubishi Heavy Industries, and ROM Technik, who will design, build and commission the Lionheart Project’s commercial geothermal power plant.
The plant will use Organic Rankine Cycle technology to generate 275 gigawatt-hours of renewable power annually, alongside the extraction of 24,000 tonnes of lithium hydroxide — enough to supply batteries for around 500,000 electric vehicles per year.
On a fixed lump-sum turnkey basis, the contract includes civil works, site preparation, equipment manufacturing, installation and testing. Performance guarantees are embedded in the deal, with penalties for delays or underperformance.
Critical financing step
Execution of the contract is a condition precedent for financing, which Vulcan is targeting to finalise in the second half of 2025.
It follows other recent milestones, including a land purchase approval from the City of Landau for Vulcan’s upstream Geothermal and Lithium Extraction Plant (G-LEP), and an exclusive technology deal with NORAM Electrolysis Systems earlier this month for downstream lithium electrolysis.
“The geothermal power plant is a key component of our Phase One operation,” said Vulcan managing director and CEO Cris Moreno.
“Securing the services of both Turboden and ROM Technik, who are leaders in their respective fields, will underpin the construction of the geothermal power plant, and we are fully confident in their ability to execute, having delivered similar type projects in Germany and globally,” he added. “This is yet another milestone in our aim to deliver a local, low-cost source of sustainable lithium for the European battery supply chain, with a co-product of renewable energy production.”
Vulcan’s Lionheart Project, located in the Upper Rhine Valley Brine Field, is positioned as Europe’s largest lithium resource. The company aims to deliver both baseload renewable power and lithium hydroxide with a carbon-neutral footprint, aligning with the EU’s push for secure and sustainable battery supply chains.