Vulcan Energy (ASX:VUL) has been awarded Strategic Project status by the European Commission for its Lionheart lithium project under the EU’s Critical Raw Materials Act (CRMA), enabling streamlined permitting and improved access to public and private funding.
The Lionheart project, located in Germany’s Upper Rhine Valley, is Europe’s largest lithium resource and forms part of Vulcan’s broader plan to establish a fully domestic, carbon-neutral lithium supply chain for electric vehicle batteries.
Strategic designation allows Vulcan to formally request meetings with the CRMA financing subgroup and CRM Board, which will advise on financing pathways across both private and EU-level funding programs. It also gives regional and national authorities the opportunity to support the project through the European Development and Cohesion Funds.
The Commission assessed more than 170 applications for strategic status, with each reviewed by four independent experts covering technical, financial, and ESG factors. Vulcan’s application was based on its integrated geothermal-powered lithium extraction process and its focus on local production within the EU.
“This validates the importance of our integrated lithium and renewable energy project to European industry,” said Managing Director Cris Moreno. “Our project is strategically positioned to support the CRMA benchmarks and diversify the EU’s lithium supply away from third countries.”
Vulcan’s Phase One project combines lithium extraction from geothermal brines with in-house conversion to battery-grade material. The company uses proprietary sorbent technology and renewable geothermal energy to achieve net-zero emissions.
The CRMA, introduced in May 2024, sets formal targets for domestic raw material processing, extraction, and recycling within the EU to reduce reliance on non-European suppliers and strengthen supply chain resilience.
Shares are trading 11.79% higher at $5.31.
