Vulcan Energy's Lionheart Permits Pile Up While the Market Looks the Other Way

Vulcan Energy closed at EUR 1.21, down 6.3%, even as it began commercial VULSORB output and secured a second Lionheart lithium licence.

A second production licence, a boardroom reshuffle and the start of commercial output of a key extraction material would normally be enough to lift a developer's shares. For Vulcan Energy, they have done nothing of the sort.

The stock closed Friday at EUR 1.21, down 6.3%, leaving it just 0.8% above its 52-week low of EUR 1.20. The weakness was not company-specific: lithium names across the board came under selling pressure in September, with media reports pointing to worries about a global supply glut and doubts over electric-vehicle demand. For Vulcan, that sector-wide drag has become largely detached from what is happening inside the business.

Two Permits, One Production Start

The operational news flow has been steady. Vulcan began commercial production of VULSORB, its proprietary extraction material, at industrial scale in Germany. The substance is used to make the initial fill of the adsorption columns at the Lionheart project, ahead of its planned commissioning in the second half of 2028.

On the regulatory front, the company secured its second lithium production licence for Lionheart roughly two weeks ago. The permit, named Ilka and issued by the Rhineland-Palatinate mining authority, covers the Landau geothermal production field, where renewable heat is already being extracted. It marks another milestone on the road to the targeted 2028 start of production.

New Chair, New Focus

Leadership changes have accompanied the permitting progress. Angus Barker took over as Non-Executive Chair about two weeks ago, while founder Dr. Francis Wedin moved into a dedicated founder role. Wedin will concentrate on the growth portfolio and business development, including the VULTEC technology unit. The reshuffle is intended to align the supervisory bodies with the construction and execution phase of the project.

The company also published its first-half report on 10 September.

Cash Position and Long-Term Ambitions

Financially, Vulcan says it is equipped for the build-out ahead. As of 30 June 2026, cash and deposits stood at EUR 273.9 million. Development spending in the first half totalled EUR 168.0 million, directed mainly at procuring and erecting plant for Lionheart.

Management is holding to its broader timeline: first commercial production in 2028, followed by an annual output of 24,000 tonnes of lithium chemicals once ramped up, alongside substantial volumes of renewable power and heat.

Analysts, for their part, have not blinked. Canaccord Genuity reaffirmed its "Buy" rating on 13 September, even as the shares sit barely above their yearly trough. For investors, the picture remains split: methodical progress on technology and permits on one side, and a market that has yet to be convinced on the other.