Vulcan Energy Resources (VUL) Q1 2026 TU earnings summary

Executive summary

• €2.2bn financing secured for Phase One Lionheart in Germany's Upper Rhine Valley, with construction underway and commercial production targeted for 2028 in the lowest cost quartile for lithium chemicals production.

• Integrated geothermal and lithium brine project aims to decarbonize the battery supply chain, supplying up to 24ktpa lithium chemicals, 275 GWh renewable power, and 560 GWh heat annually over 30 years.

• Strong institutional shareholder base, robust government support, and binding offtake agreements with major European battery and automotive companies.

• Management team with deep project delivery experience in lithium, energy, and major infrastructure.

• Entered the S&P/ASX 200 Index, reflecting increased market stature.

Financial highlights

• €1,838m pre-tax NPV8 and €1,152m post-tax NPV for Lionheart; pre-tax IRR 15.6%, post-tax IRR 13.7%.

• Average annual revenue projected at €566m, with CAPEX of €1,476m and average EBITDA margin of 75%.

• C1 production cost targeted at €3,588/t LHM (US$4,162/t), placing the project in the lowest cost quartile globally.

Outlook and guidance

• First lithium production targeted for 2028, with all major permits received and field development plan on track.

• Future phases planned to replicate the Lionheart model, leveraging existing infrastructure and partnerships to expand capacity and reduce CAPEX/OPEX.

• Focus remains on delivering Lionheart execution milestones and capital efficiency improvements through feasibility studies for future phases.

• Ongoing pre-feasibility and funding applications for future geothermal and lithium projects in Mannheim and Ludwigshafen.

• Positioned to benefit from European battery supply chain growth and local content legislation coming in 2027.