Vulcan Energy Announces €1.26 Billion Second Lithium Project in Germany
Vulcan Energy has unveiled a preliminary feasibility study for its second lithium and geothermal project, named Ludwig, located near its flagship Lionheart site in the Upper Rhine Valley Brine Field of Germany. The proposed development is expected to produce 21,100 tonnes per year of battery-grade lithium carbonate over 30 years, totaling around 517,000 tonnes. With a projected capital cost of €1.26 billion and an estimated post-tax net present value (NPV) at 8% discount rate of €1.73 billion, the project is expected to yield strong returns with a post-tax internal rate of return (IRR) of 20.2%. Ludwig will leverage infrastructure and technology developed for Lionheart but aims to be more capital-efficient by around 15%. The development includes 14 production wells and an integrated lithium processing facility, alongside geothermal heat generation expected to produce about 3,125 GWh annually—some of which may be sold externally. Vulcan also increased Ludwig’s Indicated Mineral Resource by 91% to 1.25 million tonnes of lithium carbonate equivalent. The company plans further appraisal drilling and a definitive feasibility study before making a final investment decision in 2029, contingent on the completion of Lionheart's construction.
Topics: Geothermal Energy Infrastructure Lithium Mining Projects