Wedoany.com Report-Dec.3, Vulcan Energy Resources announced on Wednesday that it has secured a comprehensive €2.2 billion financing package, enabling immediate start of construction at its Lionheart lithium and renewable energy project in Germany's Upper Rhine Valley.

Vulcan's Lionheart project in the Upper Rhine Valley.

The Australia-listed company confirmed that the board has approved the final investment decision and that site works will begin this week.

"The board has taken the final investment decision (FID), it’s fully funded and we will be putting shovels in the ground on Friday," executive chair Francis Wedin told. "It's a two-and-a-half-year build, so the clock starts now."

The funding comprises up to €603 million in new equity raised through institutional placement and entitlement offers at €2.24 per share, alongside substantial debt facilities coordinated by a syndicate of 13 institutions. Participants include the European Investment Bank, five export credit agencies, seven commercial banks, and direct support from European and German government programmes.

From 2028, the Lionheart project will supply lithium chemicals for a 10-year period to major customers including Stellantis, LG Corp, Umicore, and Glencore, while simultaneously generating renewable geothermal energy.

Approximately 72 percent of contracted lithium volumes are protected by floor or fixed-price agreements significantly above current spot levels, providing revenue stability during the initial decade of operation.

"There's been a deficit of new projects being FID-approved, so at some point that deficit is going to hit home," Wedin added, expressing confidence in the long-term market outlook despite short-term price softness.

The initiative has received strong backing from German and European authorities, including €104 million in previously awarded grants aimed at supporting domestic production of battery-grade lithium and reducing external supply dependency.

Construction is now under way, with first commercial lithium and renewable energy output scheduled for 2028 following the planned 30-month development timeline. Trading in Vulcan shares was halted on Wednesday pending the financing announcement.