Key Highlights:
- Vulcan Energy (ASX: VUL, FSE: VUL) has received approval from the European Investment Bank (EIB) Board for its participation in Phase One financing.
- The potential financing package could amount to up to €500 million (~A$819 million), subject to final due diligence and approval.
- The financing could include EIB direct uncovered facilities, export credit agency-backed financing, and liquidity lines for participating banks.
- Vulcan is progressing its Phase One Project, aiming to produce 24,000 tonnes of lithium hydroxide annually, supporting the European electric vehicle (EV) supply chain.
- The EIB is one of the world’s largest climate finance providers, aligned with EU sustainability goals, aiming for 55% emission reduction by 2030 and net-zero emissions by 2050.
Melbourne, Australia – 19 November 2024 – Vulcan Energy Resources (ASX: VUL, FSE: VUL) is pleased to announce that the European Investment Bank (EIB) Board has given the green light for its involvement in Vulcan’s Phase One financing. The EIB’s participation could see up to €500 million (~A$819 million) allocated to the project, pending final due diligence, signing of legal documents, and internal approvals.
What’s Next for Vulcan’s Financing
The €500 million financing package is expected to consist of:
- EIB direct uncovered facilities.
- Funding via export credit agencies (ECA).
- Liquidity lines for commercial banks involved in the process.
The EIB’s involvement is viewed as a cornerstone for Vulcan’s Phase One funding, complementing the support the company has already secured. Vulcan has already garnered €120 million (~A$196 million) from Export Finance Australia, with strong indications of additional backing from Export Development Canada, Bpifrance Assurance Export, and SACE.
Why It Matters
Vulcan is developing the world’s first integrated renewable energy and lithium project in Germany’s Upper Rhine Valley. The company is focused on decarbonising the lithium supply chain for the electric vehicle (EV) market, aligning with the EU’s sustainability goals to reduce greenhouse gas emissions by 55% by 2030 and reach net-zero emissions by 2050.
The Phase One Project aims to produce 24,000 tonnes of Lithium Hydroxide Monohydrate (LHM) per year, supporting the production of 500,000 electric vehicles (EVs). Vulcan is set to supply lithium to major automakers and battery manufacturers, including Stellantis, its fourth largest shareholder.
Looking Ahead
Felicity Gooding, Vulcan’s Group Chief Financial Officer, commented: “The approval from the EIB underscores the significance of this project, not only for Germany but for the broader European Union. The EIB’s participation is a significant step forward in creating a sustainable domestic lithium supply chain for Europe.”
With the EIB now on board, Vulcan is poised to continue advancing its mission to supply clean lithium for the European EV market while supporting local renewable energy needs.
