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Germany Grants Vulcan Energy €104 Million for Clean Lithium Production]
Startup Vulcan announced on Tuesday that it has received a €104 million ($122 million) grant from the German government to produce clean lithium. Berlin aims to boost EV production and reduce reliance on raw material imports through this initiative.
Vulcan stated that the funding, jointly provided by the federal government and the states of Rhineland-Palatinate and Hesse, will support a project "designed to strengthen the resilience of critical raw material supply chains in Germany and Europe."
The German Mineral Resources Agency estimates that by 2030, the country's annual lithium demand could reach 170,000 mt. Its automotive industry currently depends on imports from Australia, Argentina, Chile, and China to meet battery production needs.
Related studies indicate Germany possesses sufficient lithium reserves to meet domestic demand for decades.
Vulcan revealed last year that its first large-scale industrial plant, expected to produce 24,000 mt of lithium hydroxide annually—enough for 500,000 EVs—will commence operations by the end of 2026.
Vulcan is investing €690 million in the project. The company will construct a facility in Landau, Rhineland-Palatinate, to extract lithium chloride, and another plant near Frankfurt to convert it into lithium hydroxide—a key raw material for lithium battery production.
The company noted that funds will be disbursed over 36 months starting October 1. The Ministry of Economy stated that approximately 30% of state-level support will be co-funded by Rhineland-Palatinate and Hesse respectively.
State Secretary Stefan Wenzel of the Ministry of Economy said in a statement: "In an era of growing geopolitical challenges, it is necessary to intensify efforts...to open up alternative raw material sources for China's economy."
Source: ming.com