Vulcan Energy (ASX:VUL) has signed a conditional debt commitment letter for €879m (about A$1.45bn) to fund Phase One of its Lionheart Project. The agreement is backed by Export Finance Australia (EFA) and a syndicate of seven commercial banks.
Lionheart is a major lithium and renewable energy initiative located in the Upper Rhine Valley Brine Field, which spans Germany and France. The project aims to produce lithium from sub-surface brines, leveraging natural heat to create battery-grade materials, and is designed to support Europe’s electric vehicle supply chain and energy transition goals.
The conditional commitment marks a key step in Vulcan’s financing strategy. The financing package includes direct lending of €120m from EFA, with the remainder provided by a group of four "structuring banks" (ABN AMRO, ING, Natixis CIB, and UniCredit) and three other international project finance banks. The commitment is conditional on due diligence, regulatory approvals, and the finalisation of legal documentation, which is expected in the first half of 2025.
Vulcan is aiming for a total debt package of €1.5bn to €1.6bn, with additional commitments expected from Export Development Canada (EDC), Bpifrance, and SACE. The European Investment Bank (EIB) has already signalled its support for the project.
Shares are trading 2.08% higher at $5.89.
