Vulcan Energy, a material exploration company specializing in lithium production, has secured €250 million (~$290 million) in financing from the European Investment Bank (EIB).
The funding will be used to develop its €2 billion (~$2.3 billion) Phase One Lionheart lithium project in Germany’s Upper Rhine Valley.
The EIB’s support for the project is part of its Critical Raw Materials Strategic Initiative, which focuses on projects that can provide secure, responsible supplies of key materials for Europe’s energy, digital, and defense sectors, and is backed by the EIB’s TechEU initiative.
The project is designed to produce 24,000 tons of lithium hydroxide monohydrate (LHM) per year, accounting for around 12% of Europe’s expected lithium hydroxide demand in 2030. EIB states these figures will significantly decrease the European industry’s dependence on imports and directly support the objectives of the EU’s Critical Raw Materials Act.
“The EIB’s participation underlines the significance of developing a European, sustainable lithium supply chain while supporting local innovation, employment, and a carbon-neutral future,” said Vulcan Energy’s Managing Director and CEO, Cris Moreno.
Last year, the company secured €40 million (~$44 million) through strategic investments to support early-stage validation of the Engineering, Procurement, and Construction Management (EPCM) contract for Vulcan’s Phase One lithium plant.
In addition, the project has also secured additional equity backing from the German Federal Government’s raw materials fund, managed by KfW. Siemens, Hochtief, and Demeter’s Climate Infrastructure Fund have likewise contributed equity to the project.
According to Mercom’s 9M and Q3 2025 Funding and M&A for Energy Storage report, announced debt and public market financing for Energy Storage technology companies decreased 44% YoY, with $8.4 billion in 29 deals in 9M 2025, compared to $15 billion raised in 22 deals in 9M 2024.
In October, Electra Battery Materials, a provider of battery-grade materials for the electric vehicle and energy storage industries, announced the completion of its $34.5 million financing and $40 million debt equitization for its cobalt sulfate refinery in Temiskaming Shores, Ontario, Canada.
