Vulcan Energy Pushes Lionheart Toward 2028 Start With Second Rig and Fresh Capital Calls

Vulcan Energy has begun drawing down strategic equity and public funding for its Lionheart project, a sign that financing for the German lithium venture has moved from the planning stage into actual execution. The company confirmed the drawdowns alongside its quarterly update, which also flagged that drilling and construction remain on schedule and within budget.

Rig V10 Heads for Trappelberg

The clearest operational marker came with the mobilization of the second heavy drilling rig, V10, to the Trappelberg site. Trappelberg is the fourth drilling location at Lionheart, and the additional unit will run alongside V20 to support parallel work within a program spanning 28 wells. The Financial Times reported the move a day before Vulcan's own confirmation.

Vulcan also disclosed that testing of the seventh well took place after the close of the reporting quarter. First production is still targeted for the second half of 2028 — an intended start date rather than a milestone already achieved.

Morgan Stanley Trims Its Stake

On the shareholder side, Morgan Stanley filed a reduced voting position on November 5, cutting its reported total from 5.12% to 3.96%. The mandatory disclosure sets the threshold date at October 30. The position breaks down into 0.28% in voting rights and a further 3.68% held through instruments, which the filing reports separately.

Broader market sentiment also lent support. Australian resource stocks enjoyed a wide rally in which lithium names, Vulcan among them, moved higher, with the sector notching a gain of 7.2%. The shares added 0.6% in the prior session and were up 6.2% at EUR 0.7860 in pre-market trading.

The quarterly report, published October 30 and covering the period through September 30, described progress on both the drilling campaign and project delivery, with the funding drawdowns forming part of that same update.