Vulcan Energy Resources (VUL) Q4 2025 TU earnings summary

Executive summary

• Construction of the integrated lithium and renewable energy project, Phase One Lionheart, is underway with full financing secured and first production targeted for 2028, aiming to supply the European EV and battery markets with sustainable, low-cost lithium hydroxide.

• The project leverages proprietary VULSORB® A-DLE extraction technology and in-house drilling capabilities, supporting a scalable, phased growth strategy across the Upper Rhine Valley.

• Strategic partnerships and offtake agreements, including a major deal with Glencore for 36,000–44,000 tonnes of LHM over eight years, underpin long-term revenue and market positioning.

• All major construction permits have been received, execution has begun with key supply and EPCM contracts, and no lost-time injuries have been recorded, reflecting a strong focus on health, safety, and ESG.

• The project is positioned as a critical raw materials supplier for Europe, supporting decarbonization and rated “Dark Green” by S&P Global for sustainability.

Financial highlights

• €2.2bn in project financing secured, including €1.3bn in debt facilities, €1.4bn from public-backed funding, and €545m raised from institutional and retail capital.

• HOCHTIEF invested €169m, with €39m in the project entity and €130m in shares.

• Phase One Lionheart: €1,838m pre-tax NPV8, €1,152m post-tax NPV, €1,476m CAPEX, and €566m average annual revenue at a 75% EBITDA margin.

• C1 production costs estimated at €3,588/t LHM, placing the project in the lowest cost quartile globally.

• Development expenditure for the quarter was €14.9m, mainly for drilling, preparatory works, and substation construction.

Outlook and guidance

• First commercial lithium hydroxide production is targeted for 2028, with a 30-year project life and potential for rapid expansion through additional phases.

• Focus for 2026 is on delivering execution milestones and capital efficiency improvements.

• Future phases are planned to replicate the Phase One model, targeting lower CAPEX and OPEX, and leveraging partnerships for heat offtake.

• Ongoing feasibility studies and progress updates for shareholders are planned.