Vulcan Energy has signed a binding purchase agreement with a wholly owned subsidiary of commodities giant Glencore for the supply of battery-grade lithium hydroxide monohydrate (LHM), marking the company’s fourth major offtake partnership.
Under the eight-year deal, Vulcan will supply Glencore with a total of 36,000 to 44,000 tonnes of LHM as part of its Phase One “Lionheart” project. While annual delivery volumes were not specified, the total supply will remain within the first project’s production scope. Vulcan said the agreement completes the required offtake portfolio for Phase One financing, joining earlier deals with Stellantis, Umicore, and LG Energy Solution.
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Vulcan aims to produce 24,000 tonnes of LHM annually under the Lionheart project, enough to power around 500,000 electric vehicles. Glencore’s agreement places it among Vulcan’s three largest customers, alongside LG Energy Solution (41,000–50,000 tonnes) and Stellantis (81,000–99,000 tonnes), while Umicore has secured 28,000–42,000 tonnes. If all four customers take delivery at the upper end of their contracts, the total would amount to 235,000 tonnes — equivalent to roughly ten years of production.
Vulcan Energy is still in its pilot phase, having produced battery-grade LHM for the first time in January 2025 at its Central Lithium Electrolysis Optimisation Plant (CLEOP) in Frankfurt-Höchst. The lithium is extracted from geothermal brine at the company’s Landau site before processing into LHM in Frankfurt — marking Europe’s first fully domestic production chain for battery-grade lithium.
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The commercial-scale plant, also to be built in Frankfurt-Höchst, received its construction permit in September. Vulcan expects to finalise financing for the Lionheart project in the fourth quarter of 2025, paving the way for construction to begin soon after.
“We welcome the start of a long-term relationship with Glencore,” said Cris Moreno, Managing Director and CEO of Vulcan Energy. “With this agreement—a key requirement for Phase One financing—Vulcan has achieved a strong mix of offtake partners across the value chain, including an automaker, a battery manufacturer, a cathode producer, and now a global commodities trader with deep European expertise.”