October 17, 2025: Vulcan Energy has signed a key binding European lithium offtake deal to supply mining giant Glencore.
Vulcan said on October 13 it will supply enough battery-quality lithium hydroxide monohydrate (LHM) from its phase one Lionheart Project — the capacity of which is said to be enough to produce 500,000 battery electric vehicles annually.
A total of between 36,000-44,000 tonnes of LHM will be supplied over an initial eight-year period from Lionheart, which covers an area of more than 2,200 km² in Germany’s Upper Rhine Valley, and representing about 20% of Vulcan’s current planned output.
Vulcan said it will harness natural geothermal heat to produce lithium from sub-surface brines and to power conversion to battery grade material using its proprietary VULSORB technology.
Vulcan, which has already signed offtake deals with Stellantis, Umicore and LG Energy Solution, said the Glencore agreement represented the final such arrangement for phase one financing.
However, the company said talks continue with other potential customers, including German and European automakers, who have expressed an interest in taking further volumes from phase one.
Financial details were not disclosed, but Vulcan said pricing mechanisms are based on a basket of fixed, floor-ceiling and index-based floating prices during the proposed debt payback period.
Vulcan is on course to start construction of its commercial processing plants starting in 2028, followed by product qualification during 2029.
Vulcan MD and CEO, Cris Moreno, said the company had secured a good mix of offtake partners for the first phase of lithium production, including battery and cathode manufacturers and a commodities trader — all with a strong European focus.
Glencore’s head of lithium, Robin Francois, said the deal would reinforce the firm’s position as one of the leading suppliers of battery raw materials.
This August, Glencore acquired troubled Canada-based recycler Li-Cycle for an undisclosed sum.
The deal came two months after Batteries International reported that Li-Cycle had launched a formal sale of its business and had also started bankruptcy proceedings.
