ABB and Vulcan Energy Partner to Boost Europe’s EV Lithium Supply
Introduction to the ABB-Vulcan Partnership
Vulcan Energy has partnered with ABB to establish one of Europe's first fully integrated renewable lithium production facilities. Located in Germany’s Upper Rhine Valley, the Lionheart Project combines lithium extraction with renewable energy generation, making it a significant milestone in Europe’s energy and electric vehicle (EV) sectors.
The Lionheart Project: A Game-Changer for Lithium Supply
Vulcan Energy’s Lionheart Project aims to produce 24,000 tonnes of lithium hydroxide monohydrate (LHM) per year—enough to supply batteries for around 500,000 electric vehicles annually. This production is crucial to meeting the growing demand for lithium, a key component in EV battery manufacturing.
The project’s dual approach integrates lithium extraction with renewable energy generation, contributing 275 gigawatt-hours (GWh) of electricity and 560 GWh of heat. This strategy supports both industrial operations and broader clean energy goals, reducing reliance on traditional fossil fuels.
ABB’s Role in Supplying Electrical Infrastructure
As Vulcan’s main electrical contractor, ABB will manage the complete electrical infrastructure for the project. This includes powering the Lithium Extraction Plant in Landau, the Central Lithium Plant near Frankfurt, and the surrounding well sites. ABB’s responsibility spans from high-voltage grid connections down to building-level processes.
This collaboration between ABB and Vulcan is seen as a model for integrating clean energy solutions with advanced electrification in industrial settings, paving the way for future projects in renewable energy and sustainable mining.
A Long-Term Lithium Supply for the EV Industry
Vulcan Energy has already secured long-term agreements for its lithium supply, with major companies such as Stellantis, LG Corp, Umicore, and Glencore. These offtake agreements will supply lithium to battery manufacturers across Europe starting in 2028, ensuring a stable and sustainable supply of lithium for EV production.
Multi-Layered Financing Strategy
Vulcan’s funding for the Lionheart Project totals US$2.56bn, with contributions from equity, grants, and debt. This includes institutional placements raising up to US$709m, supported by 13 financial institutions including the European Investment Bank and several commercial banks. Additionally, Vulcan has received US$122m in German government grants to bolster Germany’s domestic electric vehicle production capabilities and reduce its reliance on imported raw materials.
Project Timeline and Future Prospects
Construction for the Lionheart Project is fully funded and is set to begin immediately, with a projected timeline of two-and-a-half years. Full-scale operations are expected to commence after commissioning, solidifying Vulcan’s position as a leading supplier of sustainable lithium in Europe.
Conclusion: A Sustainable Future for Lithium and EV Batteries
The partnership between ABB and Vulcan Energy is a key development in advancing Europe’s electric vehicle battery supply chain. With a focus on integrating renewable energy with industrial processes, this project offers a blueprint for sustainable lithium production and sets the stage for future growth in Europe’s green energy and EV sectors.
