Wedoany.com Report-Oct. 14, Vulcan Energy announced on Monday that it has signed a supply agreement with Glencore to provide lithium hydroxide monohydrate from its Lionheart project in Europe. Under the deal, Vulcan will deliver between 36,000 and 44,000 tonnes of lithium hydroxide monohydrate over an initial eight-year period, representing approximately 20% of the company’s planned Phase 1 output.

Vulcan’s geothermal power plant in Germany.

The Lionheart project, situated near the French-German border, is described by Vulcan as Europe’s largest lithium resource. The supply agreement with Glencore follows prior deals with automaker Stellantis, battery producer LG Energy Solution, and materials company Umicore. Vulcan indicated that this will complete the offtake agreements needed to secure financing for Phase 1 of the project, while discussions continue with additional European automakers.

Cris Moreno, Vulcan’s CEO and managing director, said: “Vulcan has now achieved a good mix of offtake partners for Phase 1 lithium production: an automaker, a battery maker, a cathode manufacturer, and a commodities trader, all with a strong European focus.” Moreno emphasized that the diverse partnership base strengthens the project’s market positioning and financial foundation.

The Lionheart project aims to supply high-purity lithium hydroxide to support Europe’s growing battery and electric vehicle (EV) industry. Vulcan’s strategy focuses on leveraging its local European resource to provide secure, sustainable lithium supply for industrial partners.

The agreement with Glencore also highlights Vulcan’s integration with key players across the lithium and battery supply chain, ensuring that output from Lionheart reaches multiple segments including automotive, battery, and material production. This approach is expected to enhance the resilience and predictability of the project’s revenue streams.

Vulcan has emphasized the significance of localizing lithium production within Europe, reducing reliance on imports and supporting regional EV and energy storage manufacturing. The company continues to engage with other European manufacturers to expand offtake partnerships for the remaining capacity of the Lionheart project.

Overall, Vulcan’s agreements and partnerships reflect the broader European effort to secure domestic lithium supply for the rapidly growing electric mobility and battery sectors. The Lionheart project is positioned as a critical contributor to Europe’s energy transition, providing a strategic and sustainable source of lithium hydroxide for multiple industrial applications.

This final offtake deal with Glencore, together with the earlier agreements, completes the supply framework for Phase 1 of Lionheart, enabling Vulcan to move forward with production and financing plans while supporting the scaling of Europe’s lithium and battery ecosystem.