Vulcan Energy Resources (ASX: VUL) has secured its first lithium production permit for the Lionheart Project, marking a significant step in the Company’s Vulcan Lionheart project update for 17 Mar 2026. The licence is the first of its kind to be granted in the Upper Rhine Valley Brine Field (URVBF) and in the state of Rhineland-Palatinate.
Figure 1: Lionheart lithium extraction facility rendering [Courtesy: Vulcan Energy]
The lithium licence approval news carries particular weight because Lionheart is already funded and in construction, backed by a EUR2.2bn (A$3.9bn) financing package executed in December 2025. With commercial production targeted for 2028, this permit moves Vulcan meaningfully closer to becoming Europe’s first fully domestic lithium supply chain.
LiThermEx Licence Scope and Coverage Within Lionheart
A Permit Built on an Already-Producing Site
The production licence, designated LiThermEx, covers Vulcan’s Insheim geothermal production permit area within the Lionheart Project. The Insheim area is already generating renewable heat and power, making it an active site rather than a greenfield start.
The LiThermEx licence has been granted for an initial six years. Vulcan intends to extend it to a minimum of 30 years, consistent with the Lionheart Project Field Development Plan.
Figure 2: Map showing Vulcan Energy’s Lionheart Project area across the Upper Rhine Valley Brine Field spanning Germany and France [Courtesy: Vulcan Energy]
Further Licences Planned Across the Lionheart Area
The LiThermEx licence is the first of several planned for the broader Lionheart Project area. Additional lithium production licences are expected to follow, progressively covering the full extent of the URVBF licence footprint.
This staged licensing approach reflects how lithium mining works within Vulcan’s model, where each permit area is progressively advanced as regulatory approvals are secured alongside construction milestones.
Lionheart’s Production Targets and Energy Output
Production Capacity and Energy Co-Product
The Vulcan Lionheart project update confirms the Project’s Phase One production target remains at 24,000 metric tonnes of lithium hydroxide monohydrate (LHM) per annum. That volume is equivalent to supplying approximately 500,000 electric vehicle batteries each year.
Alongside lithium output, Lionheart is designed to produce 275 GWh of renewable power and 560 GWh of renewable heat per annum for local consumers. The Project is designed for a 30-year operational life.
Vulcan’s Geothermal Extraction Method
Understanding how lithium mining works here sets Vulcan apart from conventional producers. Lithium is extracted from naturally heated geothermal brines beneath the Upper Rhine Valley using Vulcan’s proprietary VULSORB technology, rather than through hard rock mining or evaporation ponds.
The brine is drawn from depth, lithium is extracted, and the geothermal heat is used to power the conversion process. Surplus renewable energy is sold into the local market, creating a low-carbon production model that underpins the Company’s positioning as a carbon-neutral lithium producer.
Management Comment on the Milestone
CEO Cris Moreno on the Licence and Construction Progress
Vulcan Managing Director and CEO Cris Moreno described the permit as another important milestone for the Vulcan Lionheart project update. He thanked the Mining Authority in Rhineland-Palatinate for their collaboration throughout the approval process.
Figure 3: Cris Moreno, Managing Director and CEO of Vulcan Energy Resources [Courtesy: Vulcan Energy]
Mr Moreno stated the lithium licence approval news sits alongside the EUR2.2bn (A$3.9bn) funding package, which supports construction activities currently underway. He added that the Company is another step closer to delivering Europe’s first fully domestic lithium supply chain, powered by geothermal energy co-production.
Industry Outlook
The lithium licence approval news from Vulcan comes at a time when Europe is actively working to reduce its dependence on imported battery materials. Demand for lithium hydroxide is expected to grow substantially through the decade as electric vehicle adoption accelerates across the European Union. Integrated, low-carbon projects such as Lionheart represent a new model for how lithium mining works at scale, combining resource extraction with renewable energy co-production to support both supply chain resilience and decarbonisation targets.
Vulcan Share Price
Vulcan Energy Resources (ASX: VUL) is currently trading at $3.030 per share. The Company carries a market capitalisation of A$1.43 billion. The 52-week range stands at $2.980 to $7.520 per share.
Figure 4: Vulcan Energy Resources (ASX: VUL) share price performance over the past year [Courtesy: ASX]
Future Direction and Impact
The Vulcan Lionheart project update positions the Company as a front-runner in Europe’s critical minerals push. With the LiThermEx licence secured, construction underway, and further lithium production licences planned across the broader Lionheart area, each milestone brings the 2028 production target closer to reality.
For those tracking lithium licence approval news out of Europe, Vulcan’s progress is directly relevant to the broader question of how lithium mining works within a fully integrated, geothermal-powered model. The next milestones to watch are the additional licence approvals across the Lionheart footprint and ongoing construction progress toward the targeted 2028 start of commercial production.
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Frequently Asked Questions
Q1. What is the Vulcan Lionheart project update announced on 17 Mar 2026?
Ans. Vulcan Energy Resources (ASX: VUL) announced it has been issued its first lithium production licence, designated LiThermEx, for the Lionheart Project in Germany’s Upper Rhine Valley Brine Field. It is the first such licence granted in the URVBF and in the state of Rhineland-Palatinate.
Q2. What does the lithium licence approval news mean for Lionheart’s timeline?
Ans. The approval is a significant step toward the targeted start of commercial production at Lionheart in 2028. The LiThermEx licence is granted for an initial six years, with Vulcan intending to extend it to a minimum of 30 years in line with the Lionheart Project Field Development Plan.
Q3. How does lithium mining work at the Lionheart Project?
Ans. Vulcan extracts lithium from naturally heated geothermal brines beneath the Upper Rhine Valley using its proprietary VULSORB technology. The geothermal heat powers the lithium conversion process, and surplus renewable energy is sold into the local market, supporting a carbon-neutral production model.
Q4. What is the Lionheart Project targeting in terms of production?
Ans. Phase One targets 24,000 metric tonnes of lithium hydroxide monohydrate per annum, enough for approximately 500,000 electric vehicle batteries each year. The Project also targets 275 GWh of renewable power and 560 GWh of renewable heat per annum for local consumers over a 30-year project life.
Q5. What funding is in place for the Lionheart Project?
Ans. Lionheart is backed by a EUR2.2bn (A$3.9bn) financing package executed in December 2025. The Company has made its Final Investment Decision, and construction is currently underway.
Sources
Vulcan Energy Resources Limited — ASX Announcement: Vulcan secures lithium production licence for Lionheart, 17 Mar 2026
ASX Market Data — Vulcan Energy Resources Limited (ASX: VUL) https://www.asx.com.au/markets/company/VUL
