Vulcan Energy's Grid Connection Goes Live as Lithium Sector Headwinds Persist

Amprion has commissioned the FWH Süd grid node for Vulcan Energy's Höchst lithium conversion plant, targeting 24,000 tonnes of lithium hydroxide from 2028.

A critical piece of infrastructure for Vulcan Energy's planned lithium conversion plant at Frankfurt's Höchst industrial park is now operational. Transmission system operator Amprion commissioned the new FWH Süd grid node on Tuesday, a facility comprising three substations designed to secure power supply for industrial projects at the site.

Joachim Kreysing, managing director of site operator Infraserv Höchst, said the lithium project could not have been realised without this high-capacity grid connection. Vulcan Energy intends to base its downstream processing of battery-grade lithium hydroxide monohydrate at the location, targeting annual output of up to 24,000 tonnes of the battery raw material — enough, by calculation, to equip roughly 500,000 electric vehicles. Production at the Hesse site is scheduled to begin in 2028.

A European Answer to Chinese Dominance

The Frankfurt conversion facility represents the final refining stage for the Lionheart project in the Upper Rhine Valley, which combines geothermal energy generation with direct lithium extraction from hot deep brine. Vulcan employs a proprietary adsorbent called VULSORB that selectively binds lithium ions from the brine.

Through this technical approach, the company is pursuing an independent European supply chain. China dominates global direct lithium extraction technology and subjected corresponding facilities to strict export controls and licensing rules early last year. Against that background, Vulcan regards its own process as one of the few bankable alternatives outside China for supplying the domestic battery and automotive industries with locally sourced raw materials.

Permits Secured, Construction on Schedule

The second lithium production licence for Lionheart was granted by the Rheinland-Pfalz mining authority, covering the geothermal production concession in Landau and remaining valid until 9 September 2032. According to the company, both construction work and field development are proceeding on schedule toward the 2028 production target.

In parallel, commercial production of VULSORB is underway in Germany. The material will serve as the initial fill for the A-DLE columns ahead of the full system's planned commissioning, ensuring that key components for direct lithium extraction are in place before operations begin.

Boardroom Change and a Look at Ludwig

Dr. Francis Wedin stepped down from Vulcan Energy's board on 11 September. He remains closely tied to the company as a major shareholder, with mandatory disclosures showing direct holdings of more than 15 million shares and 40,600 performance rights, supplemented by further stakes held through Magni Associates Pty Ltd. On the same date, The Goldman Sachs Group touched a reporting threshold for instruments on the company.

Management is simultaneously broadening its view of future expansion. At an information event, CEO Cris Moreno is presenting investors with the results of the preliminary feasibility study for the Ludwig project, outlining additional development pathways for the venture.

Market Pressure Continues to Weigh

Despite operational progress on site connections and permitting, the financial markets remain challenging. The lithium sector as a whole is suffering from falling raw material prices, with lithium carbonate quotations having retreated from their interim highs. The company's stock, listed in Australia's benchmark S&P/ASX 200, has felt the strain.

On the latest trading day, the shares fell 6.2% to EUR 1.21. Since the start of the year, the decline now totals 53%. Earlier in the week, the stock closed at EUR 1.29 on Thursday, when the year-to-date loss stood at 49%. With a market capitalisation equivalent to EUR 612.08 million, financing of the coming expansion phases remains the decisive factor for market participants on the path to targeted commercial production. Attention now turns to October, when Vulcan Energy will publish its next quarterly report, expected to contain details on the construction timeline and a reconciliation of actual spending against the project budget.