Europe’s initiatives in advancing sustainable mobility and battery technology have taken a step forward with the signing of a comprehensive financing package of €2.2 billion for Vulcan Energy Resources Limited. Vulcan Energy will use the proceeds to fully fund the construction and development of its Phase One Lionheart lithium and renewable energy project in Germany.
BNP Paribas acted as Equity and Debt Advisor for the transaction, highlighting the bank’s commitment to supporting its clients within the energy and sustainable mobility sectors.
Vulcan Energy will be the first capital investment from KfW’s Raw Materials Fund, a newly established fund established by the German government to enhance the country’s supply chain resilience for critical raw materials. Other strategic investors include HOCHTIEF, Siemens and Demeter. The debt component is supported by a syndicate of 13 financial institutions comprising the European Investment Bank, five Export Credit Agencies and seven commercial banks, including BNP Paribas.
Phase One Lionheart is Europe’s first commercial integrated lithium and renewable energy project, targeting production capacity of 24,000 tonnes of battery-quality lithium annually—enough to power up to 500,000 electric vehicles each year. The project also aims to produce renewable power and heat for consumers in the Upper Rhine Valley. Lithium production is contracted to a group of leading European customers active in the EV value chain.
This project represents an important development for the European battery and electric vehicle supply chain, delivering locally sourced, low-cost lithium. The EU has designated Lionheart as a Strategic Project under the Critical Raw Materials Act.
The transaction benefits from strong ESG credentials leveraging baseload geothermal energy and is rated Dark Green by S&P Global.
❝ The completion of this financing package marks a pivotal moment for Vulcan Energy and the advancement of sustainable lithium supply in Europe. BNP Paribas’ role as our financial adviser has been instrumental in enabling us to move from vision to execution, helping us deliver a solution for a reliable, low-carbon source of battery-quality lithium for the European market. ❞
❝ We are pleased to have advised Vulcan Energy in this landmark transaction and unique project in the heart of Europe. This initiative aligns closely with BNP Paribas’ commitment to advancing sustainable solutions that are critical to Europe’s energy sovereignty and highlights the Bank’s expertise in supporting scale-up and innovative companies. ❞