• Fully funded Phase One Lionheart project to produce 24kt p.a. of lithium hydroxide and 275 GWh of renewable power
• Financing package includes EUR1.4bn (A$2.5bn) in strategic support from German, European and international government-backed institutions
• Vulcan secures EUR263m (A$470m) in strategic corporate and climate infrastructure investment

Vulcan Energy Resources Ltd (ASX: VUL) has secured a comprehensive EUR2.2bn (A$3.9bn) financing package to fully fund the construction and development of Phase One of the Lionheart lithium and renewable energy project in Germany. The financing package includes significant support from German, European and international government-backed institutions, as well as strategic corporate and climate infrastructure investment. Key highlights include: a EUR1.4bn (A$2.5bn) debt financing package from the European Investment Bank, export credit agencies and commercial banks; EUR204m (A$364m) in German government grants; a EUR150m (A$268m) equity investment by the KfW Raw Materials Fund to acquire a 14% stake in Vulcan's German subsidiary; and a EUR133m (A$238m) investment by a consortium of strategic investors including HOCHTIEF, Siemens Financial Services and Demeter for a 15% equity interest in the Phase One Lionheart project. The financing package will enable Vulcan to fund the Phase One Lionheart development through construction, commissioning and into first cash flow generation. Vulcan has also launched a EUR603m (A$1.08bn) equity raising to further strengthen its balance sheet. The successful securing of this financing package has allowed the Vulcan Board to take a positive Final Investment Decision on Phase One Lionheart, with project execution to commence in the coming days.

Phase One Lionheart is targeted to commence first commercial lithium hydroxide production in 2028, with an initial production capacity of 24,000 tonnes per annum, enough for approximately 500,000 electric vehicle batteries per year. The project will also produce 275 GWh of renewable power and 560 GWh of heat per annum for local consumers over an estimated 30-year project life.

Vulcan Energy's Lionheart project is positioned to be a key enabler of Europe's battery and electric vehicle value chain, delivering a fully domestic and sustainable lithium supply and renewable energy to local communities and industries in Germany's Upper Rhine Valley.