Vulcan Energy’s Flagship Lithium Project Exceeds Initial Expectations

Vulcan Energy AU0000066086

Vulcan Energy Resources has reported encouraging operational progress at its Phase One "Lionheart" development in Germany. The company announced that initial testing from a new production well in the Upper Rhine Valley has outperformed the baseline assumptions in its development plan. This data reinforces the technical foundation for its integrated lithium and geothermal energy project, which is already fully funded.

The positive operational update follows the company's Final Investment Decision (FID) in December 2025, which locked in complete financing for the venture. This milestone triggered the start of construction for the commercial Geothermal Lithium Extraction Plant in Landau. Vulcan is targeting first commercial lithium production for 2028.

The Phase One project aims for substantial annual output:
* Production of 24,000 tonnes of lithium hydroxide monohydrate
* Co-generation of 275 GWh of renewable electricity
* Co-generation of 560 GWh of heat for local offtakers

The project is designed with an operational life of approximately 30 years.

Well Performance Surpasses Development Plan Assumptions

According to a company release dated January 21, the sidetrack well designated LSC-1b demonstrated productivity indices between 2.1 and 2.5 liters per second per bar. Based on a planned operating pressure drawdown of 50 bar, this indicates a potential flow rate of 105 to 125 liters per second.

This result significantly exceeds the projections outlined in the Field Development Plan, which estimated an average of 84 to 94 liters per second per well. Other critical reservoir parameters, including temperature, matrix permeability, and lithium concentration, either met or surpassed model forecasts. The successful test provides crucial technical validation for the project's core assumptions as planning for expansion continues.

Efficient Operations and Expansion Pathway

The drilling operation was executed by Vercana, Vulcan's wholly-owned drilling subsidiary. The company reported that the well was completed safely, ahead of schedule, and with zero lost-time incidents. No reportable safety, health, or environmental incidents occurred during the process.

The LSC-1 well represents the fifth drilled as part of the Phase One development, with four others already in production. The broader development blueprint calls for a total of 24 production and reinjection wells to support the integrated operation. A second drilling rig is scheduled for deployment in the second half of 2026 to accelerate this program.

Corporate Updates and Market Context

In a separate announcement also dated January 21, Vulcan disclosed adjustments to its executive remuneration policy. These changes, effective retroactively from January 1, 2026, were cited as a response to the company's transition from a development to a construction phase following the December 2025 FID.

Vulcan Energy is dually listed on the Australian Securities Exchange and the Frankfurt Stock Exchange. The company held an Extraordinary General Meeting on January 12, where the sole resolution put to a vote was passed via a poll.

For investors, the recent updates provide a clearer picture of Vulcan's forward trajectory. The project is advancing on a solid technical and financial base: initial drilling data is above plan, financing is secured, and a defined expansion path involving additional wells and a second rig from 2026 is now in motion.

@ boerse-global.de | AU0000066086 VULCAN