Vulcan Energy has laid out plans for a €1.26-billion second-phase lithium and geothermal project in Germany, as the company looks to replicate the development model being deployed at its flagship Lionheart project.
The preliminary feasibility study for Project Ludwig, located around 60 kilometers north of Lionheart in Germany’s Upper Rhine Valley Brine Field, targets production of 21,100 tonnes per year of battery-grade lithium carbonate over a planned 30-year operating life. Total expected production is about 517,000 tonnes.
Vulcan estimates development capital at €1.26 billion, including a 15% contingency. The study gives Ludwig a post-tax net present value at an 8% discount rate of €1.73 billion and a post-tax internal rate of return of 20.2%. Pre-tax NPV8 is estimated at €2.61 billion, with an IRR of 25%.
The company is positioning Ludwig as evidence that the infrastructure, drilling expertise and direct lithium extraction technology developed for Lionheart can be applied to additional projects across the Upper Rhine Valley.
Vulcan estimates Ludwig’s capital intensity will be around 15% below Lionheart on a lithium-carbonate-equivalent basis. The comparison is not strictly like-for-like, however, as the projects are at different development stages, produce different lithium products and use separate financial assumptions.
The proposed development would comprise 14 production wells and 14 injection wells across five sites, connected to an integrated lithium processing facility. The development concept shown in the PFS combines lithium extraction and conversion with geothermal heat production rather than relying solely on lithium revenues.
Ludwig is expected to produce around 3,125 GWh of renewable heat annually, with some used internally in lithium processing and the remainder potentially sold to external customers. Vulcan estimates C1 operating costs at €4,101 per tonne of lithium carbonate.
That combination is particularly relevant for Germany, where industrial decarbonization and reducing dependence on imported energy and critical minerals remain major policy priorities. Europe has also been seeking to establish more domestic lithium extraction and processing capacity as battery manufacturing expands.
Ludwig would produce lithium carbonate, while Lionheart is planned to produce lithium hydroxide, giving Vulcan potential exposure to different battery chemistries and end markets.
The PFS also increased the project’s Indicated lithium Mineral Resource by 91% to 1.25 million tonnes of lithium carbonate equivalent, while its Inferred resource stands at 2.23 million tonnes.
