Vulcan Energy (VUL) – First Lithium Production Licence Secured

Vulcan has finally landed its first lithium production licence for the Lionheart Project in the Upper Rhine Valley Brine Field. This is the first permit of its kind issued in the region, and it sits on top of the €2.2bn financing they closed late last year. The project is funded, in construction, and now has its first production approval.

A few points worth noting:

1. This licence covers the Insheim geothermal area

This isn’t a greenfield permit. Insheim is already producing renewable heat and power. The lithium overlay is being added to an existing, operating geothermal system. That reduces execution risk compared to a typical lithium project.

2. Lionheart’s scale is meaningful

They’re targeting 24kt of lithium hydroxide per year, plus 275 GWh of power and 560 GWh of heat. It’s a 30‑year project life. This is industrial infrastructure, not a drill‑and‑hope story.

3. Initial licence term is six years, extendable to 30

Standard German mining regulation. They’ll extend it to match the field development plan.

4. First production still targeted for 2028

Today’s approval is another step toward that timeline. Nothing new on schedule, but it removes one of the remaining regulatory hurdles.

5. Bigger picture: EU supply chain resilience

Germany and the EU want domestic lithium. Vulcan is positioning itself as the first integrated geothermal‑lithium producer in Europe. This permit is part of that broader policy push.

Overall, this is a straightforward de‑risking announcement. Funding is in place, construction is underway, and now the first production licence is granted. Still plenty of work ahead, but this is a real milestone, not a marketing one.

Disc: IRL and SM, totally in the red, it is a long term story.