Vulcan Energy Secures Siemens as Cornerstone Partner for Lithium Project

Vulcan Energy finalizes major €67M investment and €40M automation contract with Siemens AG, clearing the path to build its geothermal lithium project in Germany.

Vulcan Energy has finalized a pivotal dual-faceted agreement with German industrial giant Siemens AG, marking the completion of its major procurement phase and clearing the path to begin construction on its flagship European lithium project. The deal, signed on Monday, combines a substantial supply contract with a direct capital investment.

Siemens Financial Services is injecting €67 million into Vulcan Energy. This capital commitment is structured as €60 million in base equity and €7 million in standby capital, forming part of the broader €2.2 billion financing package Vulcan structured in December 2025. The investment deepens the strategic relationship beyond a simple vendor agreement.

The core of the partnership is a formal framework contract valued at approximately €40 million, running through 2035. Siemens assumes the role of main automation contractor, responsible for engineering, automation, telecommunications, and building technology at two key sites: the lithium extraction plant in Landau and the central lithium hydroxide refinery in Frankfurt. This contract supersedes a memorandum of understanding signed last year, turning an expression of intent into a binding commitment.

The Lionheart project is designed to serve dual markets. Its primary output will be 24,000 tonnes of battery-grade lithium hydroxide monohydrate annually, a volume the company states is sufficient for roughly 500,000 electric vehicle batteries each year. Concurrently, the geothermal-powered operation will generate significant clean energy, with planned annual output of 275 GWh of electricity and 560 GWh of heat over a projected 30-year operational lifespan. This provides decarbonized power and heating for the Upper Rhine region.

With this agreement, Vulcan Energy has effectively closed the planning phase for its major supply contracts. The company's focus now shifts entirely to construction progress at the Landau and Frankfurt locations. The involvement of Siemens, particularly through its digitalization tools, is aimed at optimizing production processes for the European electric vehicle battery supply chain, a move intended to bolster regional independence for critical battery raw materials.