A key ingredient in electric vehicle and grid-connected batteries, lithium is crucial for the energy transition. Lionheart will use geothermal heat to extract lithium from salty brine located underground, meaning the project will be carbon neutral, according to Vulcan, which is listed in Australia and Germany and backed by mining tycoon Gina Rinehart.
Phase one has a targeted production capacity of 24,000 tonnes of lithium a year, with offtake fully contracted for the first decade, Vulcan said in an exchange filing. The geothermal component will generate 275 gigawatt hours (GWh) of power and 560GWh of heat per year, over an estimated 30 years.
“We will be producing enough lithium during this first phase for about half a million electric vehicles per year,” Moreno said.
The funding package is a combination of debt, government grants, equity investments and equity raising from companies including Hancock Prospecting Pty Ltd, Vulcan said. Hancock is controlled by Rinehart, Australia’s richest person.
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The Australian and German governments will contribute as much as a combined €270 million to the package, according to a joint statement from Germany’s economy and energy ministry and the Australian embassy in Berlin.
The project highlights a “shared commitment to securing sustainable and diversified supply chains for critical raw materials that are essential for the global energy transition,” they said. Germany’s Raw Materials Fund is investing up to €150 million, while Export Finance Australia approved €120 million for the project.
“Australia contributes reliable resources and technological expertise, while Germany brings its industrial innovation,” German Economy Minister Katherina Reiche said in the statement. “This will reduce critical dependencies.”
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Rinehart is expected to be involved with “further equity raising down the track”, Moreno said. Neither Rinehart nor representatives at Hancock were available for comment. Trading of Vulcan shares on the ASX was halted on Wednesday.
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