Hochtief Takes a 15% Stake as Vulcan Energy Breaks Ground on Frankfurt Lithium Hub

Vulcan Energy Resources breaks ground on its Lionheart lithium conversion plant in Frankfurt, backed by €2.2 billion in financing and a 15.41% stake from builder Hochtief.

The ceremonial shovels have been lifted in Frankfurt’s Industriepark Höchst, but the real test for Vulcan Energy Resources begins with the numbers. The lithium developer officially launched construction of its central conversion plant on Wednesday, marking the physical start of the Lionheart project, while a separate filing revealed that German construction giant Hochtief has built a 15.41% stake in the company.

The Essen-based group’s holding is no passive investment. Hochtief’s strategy executive Roberto Gallardo joined Vulcan’s board in early April, and a Hochtief subsidiary has been appointed as construction partner for the facility. The industrial logic is clear: the builder has both skin in the game and a hands-on role in delivering the plant.

A €2.2 Billion Financing Jigsaw

Vulcan has assembled a funding package totaling €2.2 billion to bring Lionheart to life. A banking consortium is providing nearly €1.2 billion in senior debt, supplemented by €204 million in government grants. The state of Hesse is contributing €13.9 million in subsidies, underscoring the political backing for a project the EU has classified as strategic under the Critical Raw Materials Act.

The plant will convert lithium chloride — extracted from Vulcan’s geothermal brine operation in Landau — into battery-grade lithium hydroxide monohydrate using the company’s proprietary VULSORB® process, which achieves over 90% extraction efficiency. Phase one targets an annual capacity of 24,000 tonnes, enough to supply roughly half a million electric vehicles.

Byproducts and Supply Chain Take Shape

The facility’s geothermal roots produce more than just lithium. Each year, the operation is expected to generate 275 gigawatt-hours of renewable electricity and 560 gigawatt-hours of heat for local consumers.

On the supplier side, Siemens has signed a €40 million deal to provide automation and building technology, with a preferred-partner arrangement extending through 2035. French materials specialist Mersen has also inked a multi-million-euro contract to supply an Eco&FLEX® unit that will support the lithium chloride conversion process and enable chlorine recovery.

Offtake agreements are already in place with Umicore, LG Energy Solution, Stellantis, and Glencore, covering a substantial portion of planned output.

Cash Burn Becomes the Key Metric

The transition from planning to construction is expensive, and Vulcan’s cash position is under scrutiny. The company ended December with €523 million in the bank, while quarterly operating costs stood at €7.2 million. With concurrent drilling at the Schleidberg and Trappelberg sites, and the main drilling phase set for the second half of 2026, cash outflows are expected to accelerate sharply.

Chief executive Cris Moreno has targeted commercial production for 2028, roughly two and a half years after the groundbreaking. The first hard data on capital consumption will arrive on April 29, when Vulcan reports first-quarter results. A month later, on May 28, the annual general meeting will give management a chance to demonstrate that both the timeline and the budget for the billion-euro project remain on track.

Stock Momentum Meets Execution Risk

The market has taken note of the construction milestone. Vulcan’s shares have rallied nearly 38% over the past 30 days, trading at $2.70 — though that still leaves them roughly 32% below the 52-week high of $3.98. The stock’s recent run reflects growing confidence in the project’s trajectory, but the coming quarters will reveal whether the financial foundations are as solid as the political and industrial support suggests.