Vulcan energy (ASX: VUL) has signed a conditional debt commitment letter amounting to €879 million (approximately A$1.45 billion) to finance the first phase of its Lionheart project. The deal 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 Haut-Rhin Valley brine field, which stretches between Germany and France. The project aims to produce lithium from underground brines, harnessing natural heat to create battery-grade materials, and is designed to support Europe’s electric vehicle supply chain and energy transition goals.
This conditional commitment marks a key step in Vulcan’s financing strategy. The financial package includes a direct loan of 120 million euros 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 engagement is conditional on due diligence, regulatory approvals and finalization of legal documentation, expected in the first half of 2025.
Vulcan is targeting a total debt package of 1.5 to 1.6 billion euros, with additional commitments expected from Export Development Canada (EDC), Bpifrance and SACE. The European Investment Bank (EIB) has already expressed its support for the project.
Shares are trading up 2.08% at $5.89.
