Wedoany.com Report-Dec.5, Vulcan Energy has selected a consortium of Hochtief (Germany) and Sedgman (Australia), both subsidiaries of Spain's ACS Group, as the engineering, procurement and construction management (EPCM) contractor for the €2 billion Lionheart lithium project in Germany's Upper Rhine Valley.

The integrated development will extract lithium chloride from deep geothermal brine and convert it into battery-grade lithium hydroxide monohydrate while simultaneously supplying renewable heat to EnergieSüdwest for district heating in Landau.

Phase one of Lionheart, scheduled for completion in 2028 after approximately two and a half years of construction, will produce 24,000 tonnes per annum of lithium hydroxide – sufficient for around 500,000 electric vehicles. By 2030, the project is expected to cover approximately 12% of Europe’s forecast demand for the material.

Hochtief and Sedgman will deliver a €397 million lithium extraction plant and a €337 million central lithium plant. Hochtief is also investing €169 million in Vulcan Energy, comprising €39 million directly into Lionheart and €130 million in company shares.

"The Lionheart Project is a flagship initiative for Europe's clean energy future—combining lithium production with renewable energy generation," said Juan Santamaría, Hochtief chief executive. "It is a strategic, high-impact project that aligns with our Group's global capabilities in energy infrastructure."

Financing includes a €250 million loan from the European Investment Bank (EIB) alongside support from German federal and state authorities, commercial banks such as BNP Paribas, ING and Unicredit, and export credit agencies from Australia, Canada, Denmark, France and Italy.

Cris Moreno, Vulcan Energy's managing director, said: "The EIB's participation underlines the significance of developing a European, sustainable lithium supply chain while supporting local innovation, employment, and a carbon-neutral future."

Vulcan began pilot lithium extraction from geothermal wells at the site in 2024. Lionheart represents the commercial-scale rollout of the zero-carbon lithium process the company has pioneered in the region.