Vulcan Energy Resources (VUL) Investor Presentation summary

Project overview and strategy

• Phase One Lionheart aims to produce 24,000 tpa lithium hydroxide monohydrate (LHM), 275 GWh power, and 560 GWh heat annually from geothermal brine in Germany, targeting the European EV battery market.

• The project is underpinned by Europe's largest lithium resource, with 29.1 Mt LCE, and a 30-year project life.

• Integrated brine-to-battery solution leverages proprietary A-DLE technology and a closed-loop, low-carbon system.

• Future phases plan to replicate Phase One capacity, with strategic partnerships for heat offtake and further CAPEX efficiencies.

• VULSORB® A-DLE technology and in-house drilling (Vercana) provide scalability and cost advantages for future growth.

Financing and capital structure

• €2.2bn total funding secured: €1.34bn senior debt, €204m government grants, €150m KfW Raw Materials Fund equity, €133m project equity from HOCHTIEF, Siemens, Demeter, and €528m underwritten equity raising.

• Debt package includes EIB, ECAs, and commercial banks, with maturities to 2038 and a mix of euro and USD tranches.

• Government grants include €100m for geothermal energy and €104m for lithium production, with disbursements tied to project milestones.

• Strategic equity investments align key industrial partners with project delivery and governance.

• HOCHTIEF to become the largest shareholder, increasing its stake up to 15.7% via cornerstone investment.

Project economics and cost position

• Pre-tax NPV: €1,838m; post-tax NPV: €1,152m; CAPEX: €1,476m; pre-tax IRR: 15.6%; post-tax IRR: 13.7%.

• Average LHM production cost: €3,588/t, placing the project in the lowest quartile of the global lithium cost curve.

• Average 10-year LHM realised price: €20,456/t; average annual revenue: €566m; EBITDA margin: 75%.

• 15% CAPEX contingency included; project self-consumes geothermal electricity to optimise grant receipt and economics.

• All major permits received; construction to commence imminently, with first production targeted for 2028.