Export Finance Australia provides €120 million financing to Vulcan Energy for lithium production in Germany

Export Finance Australia (EFA) committed €120 million in early financing to support Vulcan Energy’s Phase One Lionheart Project in Germany, marking EFA’s first major transaction under the Australia–EU Free Trade Agreement. The funds will enable Vulcan Energy to scale lithium production for European electric vehicle manufacturers, addressing critical supply chain needs amid surging EV demand. Vulcan Energy, a leading lithium producer, plans to supply 22,500 tonnes of lithium hydroxide annually by 2026, sufficient for approximately 500,000 EV batteries. The project aligns with the EU’s strategic push to secure domestic critical minerals and reduce reliance on imports. EFA’s financing follows its broader $3.9 billion portfolio of critical minerals projects, reinforcing Australia’s role as a key supplier to global battery supply chains.

Counterparts (2)

borrower

Vulcan Energy Resources

company

Vulcan Energy Resources is an Australian-German company focused on developing the world's first integrated renewable energy and lithium project. Utilizing geothermal energy from the Upper Rhine Valley, the company aims to produce battery-grade lithium hydroxide with a net-zero carbon footprint, while also supplying renewable heat and power. Their strategy centers on sustainable, local lithium production to support Europe's electric vehicle transition.

Investor

Export Finance Australia

company

Export Finance Australia is the Australian Government's export credit agency, providing finance solutions such as loans, bonds, and guarantees. It supports Australian businesses, from SMEs to large corporates, foreign governments, and infrastructure projects, to engage in export trade and overseas infrastructure development.