EQS-News: Approval granted for downstream commercial lithium plant

Summary of key points

Downstream lithium plant permit approved

• Vulcan Energy (Vulcan, ASX: VUL, FSE: VUL, the Company) is pleased to announce it has secured the permit to build and operate its Central Lithium Plant (CLP) for the Phase One Lionheart Project (the Project) and a second phase, for the production of battery-quality lithium hydroxide monohydrate (LHM) at Industrial Park Höchst, Frankfurt, Germany
• The CLP is the key downstream component of the Company’s Project, which will combine production of carbon-neutral lithium and renewable energy from deep geothermal brine, decarbonising lithium production and contributing to Europe’s critical raw materials independence
• During Phase One, the CLP will have the capacity to provide up to 24,000 tonnes of LHM annually for the European battery and automotive industries, enough to produce ca. 500,000 electric vehicle (EV) batteries per annum^[1]. In a second phase, the production and storage units of CLP in Frankfurt-Höchst can be expanded
• The Company has been successfully producing sustainable, domestically produced LHM in the same Industrial Park in Höchst at its optimisation and product qualification plant, designated CLEOP, since January 2025
• The permit was received during an official handover by the Darmstadt Regional Council district president, Prof. Dr Jan Hilligardt, at the Company’s Central Lithium Electrolysis Optimisation Plant (CLEOP) in Frankfurt yesterday. Company representatives in attendance included Vulcan Group Managing Director and CEO, Cris Moreno, along with Industrial Park Höchst Managing Director, Dr Joachim Kreysing
• The CLP will be used to process lithium chloride (LiCl) into LHM, with the LiCl to be produced at the upstream integrated Geothermal and Lithium Plant (G-LEP) in Landau.

Vulcan Energy’s Managing Director and CEO, Cris Moreno, commented: “Securing the CLP permit is an important step in the development of a domestic lithium supply chain for Germany and the European Union.

“We are making substantial progress in our aim to establish a sustainable, domestic and cost-effective source of lithium for the European battery and automotive industries, supporting the EU's goal of reducing critical raw material dependencies.”

Update on key requirements for Phase One financing 

• Separately, following approval of a total of ca. €104 million (~A$186 million) grants by state and federal German governments in July 2025 under the Temporary Crisis and Transition Framework (TCTF), the grant pre-condition deadline to finalise the rest of the project financing has been extended until 31 December 2025. This brings it in line with Vulcan’s target timeline to finalise the Phase One financing during H2 2025, as required by lenders. The grants are designed to enable strategic domestic lithium production and processing to service European electric vehicle battery production. The grants are being funded by the German Federal Government and the states of Rhineland-Palatinate and Hesse under the lead of the Federal Ministry of Economy
• As part of finalising financing arrangements, amendments have been made to the offtake agreements with Vulcan’s offtake partners including Umicore, LG Energy Solution and Stellantis. The amendments principally relate to term, volume and scheduled commercial operating dates consistent with the Project timeline used in the financial model for the financing package. Volumes have been adjusted to spread offtake allowance more evenly between offtake partners. As part of finalising its lithium offtake agreements for Project financing, the Company is in the process of negotiating one last offtake agreement for Phase One and is targeting the finalisation of this agreement in advance of debt signing, to align with its financing timeline.^[2] 

Phase One offtake outlook
 

Offtake partner	Term	Phase One volumes
LG Energy Solution	6-year term	31kt of battery-quality LHM
umicore	6-year term	23kt of battery-quality LHM
STELLANTIS	10-year term	128kt of battery-quality LHM
TBA[3]	TBA	TBA

                                                                                                                                                                                     
<ENDS>
For and on behalf of the Board
Daniel Tydde | Company Secretary
Further information
Judith Buchan | Communications Lead – APAC | jbuchan@v-er.eu | +61 411 597 326
Please contact Vulcan’s Legal Counsel Germany, Dr Meinhard Grodde, for matters relating to the Frankfurt Stock Exchange listing on mgrodde@v-er.eu.

About Vulcan Energy
Vulcan Energy (ASX: VUL, FSE: VUL) is building the world’s first carbon neutral, integrated lithium and renewable energy business to decarbonise battery production. Vulcan’s Lionheart Project, located in the Upper Rhine Valley Brine Field bordering Germany and France, is the largest lithium resource in Europe[4] and a tier-one lithium project globally. Harnessing natural heat to produce lithium from sub-surface brines and to power conversion to battery grade material and using its in-house industry-leading technology VULSORB®, Vulcan is building a local, low-cost source of sustainable lithium for European electric vehicle batteries. For more information, please go to https://v-er.eu/  

Disclaimer
Some of the statements appearing in this announcement may be in the nature of forward-looking statements. You should be aware that such statements are only predictions and are subject to inherent risks and uncertainties. Those risks and uncertainties include factors and risks specific to the industries in which Vulcan operates and proposes to operate as well as general economic conditions, prevailing exchange rates and interest rates and conditions in the financial markets, among other things. Actual events or results may differ materially from the events or results expressed or implied in any forward-looking statement. No forward-looking statement is a guarantee or representation as to future performance or any other future matters, which will be influenced by a number of factors and subject to various uncertainties and contingencies, many of which will be outside Vulcan’s control.

Vulcan does not undertake any obligation to update publicly or release any revisions to these forward-looking statements to reflect events or circumstances after today's date or to reflect the occurrence of unanticipated events. No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions or conclusions contained in this announcement. To the maximum extent permitted by law, none of Vulcan, its Directors, employees, advisors or agents, nor any other person, accepts any liability for any loss arising from the use of the information contained in this announcement. You are cautioned not to place undue reliance on any forward-looking statement. The forward-looking statements in this announcement reflect views held only as at the date of this announcement.

This announcement is not an offer, invitation or recommendation to subscribe for, or purchase securities by Vulcan. Nor does this announcement constitute investment or financial product advice (nor tax, accounting or legal advice) and is not intended to be used for the basis of making an investment decision. Investors should obtain their own advice before making any investment decision.

Competent Person Statement
The information in this announcement that relates to estimates of Mineral Resources and Ore Reserves is extracted from the Bridging Engineering Study Results announcement on 16 November 2023, the Future Phase Pipeline – Mannheim Resources Growth announcements on 7 and 9 July 2025[5] and End of Validation review contained in the Prospectus released on 18 December 2024, all of which are available to view on Vulcan's website at http://v-er.eu. Vulcan confirms, that in respect of the estimates of Mineral Resources and Ore Reserves included in this announcement:
 

1. it is not aware of any new information or data that materially affects the information included in the original market announcement, and that all material assumptions and technical parameters underpinning the estimates in the original market announcement continue to apply and have not materially changed;
2. the form and context in which the Competent Persons' findings are presented in this announcement have not been materially modified from the original market announcement; and
3. all material assumptions underpinning the production targets (and the forecast financial information derived from such production targets) included in this announcement continue to apply and have not materially changed.