Vulcan finalizes lithium project in Ludwigshafen
Vulcan Energy has submitted a pre-feasibility study for its second lithium project in the Upper Rhine Graben. The Ludwigshafen site is planned to produce 21,100 tons of lithium carbonate annually. However, several further development steps are required before an investment decision can be made.
Vulcan Energy is advancing its plans for a second lithium and geothermal project in the Upper Rhine Graben. Named Ludwig, this project is set to be developed in the Ludwigshafen area, building on the experience gained from the more advanced Lionheart project near Landau. The German-Australian company has now released a pre-feasibility study for Ludwig.
Similar to Lionheart, Vulcan aims to extract lithium-rich thermal brine from underground while utilizing its geothermal energy. At Ludwig, the brine is intended to be transported to a central processing facility. There, Vulcan plans to first use its proprietary Direct Lithium Extraction (DLE) technology to produce lithium chloride, which it will then process on-site into battery-grade lithium carbonate. In contrast, at Lionheart, lithium extraction and further processing are spread across Landau and Frankfurt-Höchst.
In Ludwig’s feasibility study, Vulcan assumes an annual production of 21,100 tons of lithium carbonate. Additionally, up to 3,125 GWh of renewable heat is expected to be generated annually, intended for both its own production processes and regional customers. Together with the planned 24,000 tons of lithium hydroxide monohydrate (LHM) from Lionheart, Vulcan estimates it will be able to produce enough lithium each year for the batteries in around one million electric vehicles. However, these figures are still purely theoretical estimates from the study.
Vulcan projects 1.26 billion euros
Vulcan currently estimates the investments in Ludwig at 1.26 billion euros, which is about 15 percent lower than those for Lionheart. The company attributes the reduced investments to factors such as lessons learned from the first project and the integration of lithium extraction and processing at a single site. Operating costs are expected to be 4,101 euros per tonne of lithium carbonate equivalent (LCE). This places Ludwig in the lowest quartile of global cost curves according to Vulcan. However, these figures are also based on assumptions from the company’s own feasibility study and have not yet been confirmed by actual commercial operations.
Vulcan is much further along with Lionheart. For this first project, the company has secured financing of 2.2 billion euros and obtained construction permits for the facilities in Landau and Frankfurt-Höchst. Commercial production is scheduled to begin in 2028. Supply agreements exist with companies such as LG Energy Solution, Umicore, Stellantis, and Glencore. In April, Vulcan also brought in Siemens as a strategic investor and technology partner. According to the companies, the agreement is intended to extend to subsequent development phases as well.
Ludwig is still in a much earlier stage. Vulcan lists 3D seismics, exploration drilling, and further technical development of the project as the next steps. A final investment decision (FID) is intended to be made only after successful production starts at Lionheart. The company has not yet specified a possible date for Ludwig’s production to begin.
This initiative is relevant also in light of Europe’s dependence on battery raw materials. According to a Deloitte study published in August, 50 to 60 percent of a battery’s value is created during material extraction and processing. It is precisely in these areas that European companies are currently relatively weak. Projects such as Vulcan’s planned lithium extraction aim to bring a larger share of this value back to Europe.
Vulcan itself follows a long-term expansion strategy in the Upper Rhine Graben. After the launch of Lionheart, the company plans to develop additional projects every two to three years. Ludwig would represent the second phase of this plan. However, whether the project will actually be implemented in the form outlined now and whether the expected production volumes as well as investment and operating costs will be achieved can only be determined through further geological investigations and more detailed project planning.