Vulcan Energy's German Lithium Push Gathers Pace While Shareholders Keep Their Distance

Vulcan Energy shares dropped 3.6% to EUR 1.16 despite VULSORB production and the Ilka licence, with Lionheart output slated for H2 2028.

Vulcan Energy's equity slipped 3.6% on Monday to EUR 1.16, extending a stretch of weakness that has persisted through a run of ostensibly positive project news. No company-specific catalyst was behind the session's selling, and the decline slots into a broader downtrend that neither operational milestones nor regulatory clearances have managed to reverse in recent weeks.

The most recent of those milestones came roughly a week ago, when the company began commercial output of VULSORB, its proprietary lithium extraction adsorbent, at a facility in Germany. The material will be used for the initial fill of the extraction columns at the Lionheart project, which is slated to come online in the second half of 2028. Vulcan says testing has demonstrated extraction efficiencies of as much as 95% in lithium recovery.

That announcement marked the first commercial production of VULSORB outside China, and it is viewed as a prerequisite for Lionheart itself — a venture for which the first German phase has already secured a final investment decision, backed by a EUR 2.2 billion financing package.

Permits Pile Up, but the Tape Tells a Different Story

The adsorbent launch followed hard on the heels of another regulatory win. About two weeks ago, Vulcan locked in the "Ilka" extraction licence for Lionheart, its second such permit, authorising industrial-scale lithium extraction around Landau and adding another building block to the company's production blueprint.

Investors, however, have greeted each development with a shrug. Since the VULSORB production news broke, the stock has shed 14.9%. The Ilka licence, announced roughly a fortnight ago, coincided with a 19.0% decline. And a disclosure by The Goldman Sachs Group around the same period — concerning a change in financial instruments tied to Vulcan Energy voting rights — has been followed by a 22.6% drop.

Boardroom Reshuffle Adds a New Variable

Alongside the technical progress, Vulcan has reshaped its leadership. Angus Barker took over as Non-Executive Chair of the supervisory board about two weeks ago, stepping up from his prior roles as Lead Independent Director and deputy chairman. Founder Dr. Francis Wedin simultaneously moved from Executive Chair into a purely advisory capacity, where he will focus on the geothermal and lithium project pipeline as well as the VULTEC technology unit. The governance changes began earlier still: on 17 August, Amanda Lacaze, formerly chief executive of Lynas Rare Earths, joined the board as an independent director.

Ludwig Study Points to a Second German Phase

Beyond the first expansion stage, Vulcan is already advancing follow-on activity. Roughly three weeks ago, the Ludwig project reached the preliminary feasibility study stage. According to media reports, this second German phase targets a capital outlay of EUR 1.26 billion and, over a planned 30-year operating life, would produce 21,100 tonnes of battery-grade lithium carbonate annually.

Delivering on ventures of that scale will demand disciplined execution. With sentiment across the sector subdued, market participants are watching the company's adherence to its stated timelines with particular intensity. Vulcan's market capitalisation currently stands at EUR 579.59 million, and the pace at which the next construction and administrative steps in its German project areas proceed will go a long way toward shaping the shares' next move.

For now, the gap between what Vulcan is announcing on the ground in Landau and how its equity is trading remains wide. Whether the 95% efficiency figure or the freshly granted Ilka licence can close it appears to hinge on a single factor: the long wait until the second half of 2028.