EIB mulls €500m finance for Vulcan’s Zero Carbon Lithium project

EIB mulls €500m finance for Vulcan’s Zero Carbon Lithium project

EIB mulls €500m finance for Vulcan’s Zero Carbon Lithium project 500 512 Energy Storage Journal

February 29, 2024: The European Investment Bank is considering a financing boost of up to €500 million ($542 million) for Vulcan Energy Resources’ Zero Carbon Lithium project in Germany.

Australia-listed Vulcan said on February 23 the proposed financing for the first phase of the project,  in Germany’s southwest Upper Rhine Valley, is formally under appraisal by the bank following preliminary due diligence.

Support from the bank, which is the EU’s lending arm, would be a cornerstone to securing other debt funding for which talks are underway with credit agencies and international banks, Vulcan said.

Phase one of Vulcan’s project is targeting the production of 24,000 tonnes per annum of lithium hydroxide, which the company said would equate to supplying batteries for 500,000 EVs.

Vulcan aims to supply key auto and battery makers in the European supply chain, including its second-largest shareholder, Stellantis.

Cris Moreno, MD and CEO of Vulcan, said the bank’s consideration of financing represented “a strong and tangible signal of confidence at the European level” for the Germany project.

Vulcan announced the completion of a pre-feasibility study for its Germany project in 2021.

The company said its production process is more environmentally friendly because a hot salar brine feedstock produces heat for renewable power production — in addition to providing lithium.

Energy Storage Journal reported in February 2022 that Vulcan had signed a binding lithium hydroxide offtake deal with South Korean batteries manufacturer LG Energy Solution.