Vulcan Energy has received approval to build its commercial Lithium Extraction Plant (LEP) in Landau, Germany, marking a major step toward establishing a sustainable European lithium supply chain for electric vehicles. The German-Australian company said the city of Landau granted permission to build the facility in the D12 industrial zone, complementing existing permits for its geothermal power plant and substation.
According to Vulcan, it now holds “all necessary permits to construct the combined geothermal and lithium extraction plant (G-LEP) in Landau.” The facility’s first phase will produce several thousand tonnes of lithium chloride, which will be transported to Frankfurt-Höchst for conversion into battery-grade lithium hydroxide. The company reaffirmed its goal to produce 24,000 tonnes of lithium hydroxide monohydrate (LHM) annually, which it said would be “enough for ca. 500,000 electric vehicles per year.”
See also: Vulcan Energy Signs Eight-Year Lithium Supply Deal with Glencore for Phase One Project
Construction is due to begin later this year, though the timeline depends on the completion of financing. Vulcan emphasised that the facility “will use intermediate heat exchangers at each of its well sites to efficiently transfer heat from geothermal brine into a closed-loop industrial water cycle.” It added that “after the heat is utilised, the cooled water is recirculated back to the heat exchanger for reheating,” while the lithium-rich brine is processed and “the lithium-depleted brine is then reinjected into the reservoir, completing the cycle.”
The extracted lithium chloride will be delivered to Vulcan’s newly approved processing plant (CLP) in Frankfurt-Höchst, where it will be refined into battery-grade LHM. The company said the entire process “is uniquely carbon neutral over its life cycle and burns zero fossil fuels in the process of producing the lithium.”
See also: Vulcan Energy Secures €104 Million in German Grants to Advance Domestic Lithium Production
Vulcan Energy estimates a total investment of €690 million for the Landau and Höchst facilities. The German federal government and the states of Rhineland-Palatinate and Hesse are contributing €103.6 million through the EU’s “Temporary Crisis and Transition Framework.” The Landau facility was also chosen by the EU in March 2025 as one of 47 strategic projects under the Critical Raw Materials Act.
To finalise project financing, Vulcan has updated its offtake agreements with existing customers, including LG Energy Solution, Umicore, and Stellantis, while adding Glencore as a new partner. The company said the eight-year supply deal with Glencore covers between 36,000 and 44,000 tonnes of lithium hydroxide monohydrate.