Vulcan Energy Advances Key Lithium Extraction Initiative

Vulcan Energy Resources has reported a significant operational milestone at its German site, with its stock responding positively in recent trading sessions. The company’s share price climbed more than 7% following an announcement that initial production testing at a new well has substantially exceeded internal forecasts. This technical success coincides with two other pivotal developments: the project is now fully funded, and its construction phase has formally commenced.

Marking a transition from planning to execution, Vulcan Energy finalized the complete financing package for its flagship project in December 2025. This included a €250 million commitment from the European Investment Bank. Concurrently, in the same month, ground was broken in Landau for the commercial-scale facility designed for geothermal lithium extraction.

The first phase of the project, known as Lionheart, targets an annual production capacity of 24,000 tonnes of lithium hydroxide monohydrate. This output would provide enough battery-grade material for approximately 500,000 electric vehicles per year. The integrated operation is also engineered to generate roughly 275 GWh of renewable power and 560 GWh of thermal energy annually for local consumers over an estimated project lifespan of 30 years.

Production Test Exceeds Development Plan Assumptions

At the Lionheart project in the Upper Rhine Valley, the laterally drilled well designated LSC‑1b demonstrated a Productivity Index (PI) ranging from 2.1 to 2.5 liters per second per bar. Based on a planned operating pressure drawdown of 50 bar, this translates to flow rates between 105 and 125 liters per second.

These results are notably stronger than the base assumptions in the Field Development Plan, which had modeled average flow rates of 84 to 94 liters per second per well. During testing, the surface facility operated at its maximum capacity, further evidencing the well's robust delivery potential.

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Key Operational Highlights

• Flow Rate Potential: 105 to 125 L/s
• Productivity Index: 2.1 to 2.5 L/s/bar
• Resource Quality: Lithium concentration, reservoir temperature, and rock permeability met or surpassed expectations.
• Drilling Progress: This marks the fifth well in Phase One, with four wells already operational.
• Safety Record: No Health, Safety, or Environment (HSE) incidents were recorded during drilling operations.

Executive Compensation Revised for New Phase

Aligning with the project's move into the construction and implementation stage, Vulcan Energy’s supervisory board has approved adjustments to executive remuneration, effective January 1, 2026. The changes involve increased fixed salaries and expanded variable incentive opportunities.

• The fixed annual salary for CEO Cris Moreno rises to $804,000, plus employer superannuation contributions.
• CFO Felicity Gooding will receive a fixed salary of $670,000, plus superannuation.
• The potential short-term incentive bonus has been doubled from 25% to 50% of the fixed salary.

In additional appointments, Moreno will assume the chairmanship of the advisory boards for Vulcan Energie Ressourcen GmbH and VER GEO LIO GmbH. Gooding has been named co-managing director of the German holding company.

Drilling Program Expansion Underway

Vercana, Vulcan’s in-house drilling subsidiary, completed the LSC‑1b well safely and ahead of schedule. Plans are in place to mobilize a second drilling rig in the second half of 2026, enabling the drilling campaign to progress in parallel with plant construction.

The broader Field Development Plan outlines a total of 24 additional production and reinjection wells for the integrated geothermal and lithium operation. The timeline for the start of commercial lithium production remains unchanged, with first output still targeted for 2028.