Vulcan Energy's VULSORB Rollout Meets a Lithium Market in Retreat

Vulcan Energy's shares fell 5.3% to EUR 1.22 as lithium oversupply weighs, even as VULSORB output begins and a second Lionheart licence is granted.

Vulcan Energy is pressing ahead with the technical groundwork for its Lionheart project even as the share price tells a far grimmer story. The stock changed hands at EUR 1.22 on Friday, down 5.3% on the day, with a year-to-date loss now running at 52%. Measured over twelve months, the decline reaches 55%.

A Domestic Answer to a Chinese Chokepoint

At the heart of the company's operational momentum is VULSORB, a proprietary adsorbent used to pull lithium from geothermal brine. Commercial output of the material has begun in Germany, giving Vulcan a rare distinction among Western developers: bankable direct lithium extraction technology manufactured outside China.

The early volumes are not destined for customers. They will serve as initial fill for the A-DLE extraction columns, securing the logistical runway needed before the wider plant is commissioned. That preparatory work matters because Lionheart's targeted start-up sits in the second half of 2028, and the intervening years require the extraction trains to be built, tied into their geothermal sites and tested under operating conditions.

Two Permits, One Long Timeline

Regulatory groundwork has advanced in parallel. Roughly two weeks ago, the mining authority of Rhineland-Palatinate granted Vulcan a second lithium production licence for the Lionheart venture. Known as the Ilka licence, it runs until 9 September 2032 and covers the Landau geothermal field, where renewable heat is already being generated — allowing lithium exploration to piggyback on existing infrastructure. Reuters reported that the approval keeps the project on schedule for its 2028 production target.

Company statements indicate that field development and construction are proceeding to plan. Even so, a multi-year development phase still separates today's preparatory steps from full output, and the market is weighing that horizon with caution.

The Price Signal From China

What investors are reacting to lies beyond Vulcan's own operations. Lithium carbonate prices in China slipped to 143,000 CNY per tonne in September, the weakest level in nearly a month, as rising Australian production expectations eased supply concerns in the Chinese market. A projected surplus of 141,000 tonnes hangs over the sector, and tax relief for competing sodium-ion technology is keeping a lid on prices.

Demand-side data offers a partial counterweight: the battery storage systems segment expanded 48% to 307 gigawatt-hours. That growth has not been enough to offset the oversupply narrative, and the sentiment drag is visible across commodity developers — Vulcan included, despite its steady stream of operational milestones.