Lithium project development company Vulcan Energy has raised €40-million (about A$65-million) in strategic investments through private placements that will keep the momentum going at its zero-carbon lithium project in Germany.

Engineering-led construction, mining and services group CIMIC has invested €25-million (ten-million shares), while private group Hancock Prospecting invested €12.5-million (five-million shares) and Victor Smorgon Group €2.5-million.

Hancock has now increased its shareholding to 7.5% of the outstanding capital of Vulcan, becoming its second-biggest shareholder.

Vulcan raised the funds at €2.50 a share (A$4.08 a share), which is a 9% discount to its 30-day volume-weighted average price on the ASX.

“Today’s investments into Vulcan by CIMIC Group and Hancock Prospecting come at a particularly exciting time for Vulcan as we make significant headway towards developing Phase 1 of our flagship integrated renewable energy and Zero Carbon lithium project,” said MD and CEO Cris Moreno.

“The substantial investments by both parties will enable the early commencement of important validation works ahead of the formal EPCM contract, maintaining momentum on the project timeline and optimising the overall execution programme as we move towards final funding and construction.”

By adapting existing technologies to extract lithium from geothermal brine, Vulcan aims to deliver a local source of sustainable lithium for Europe, built around a carbon neutral strategy with exclusion of fossil fuels.

Already an operational renewable-energy producer, Vulcan will also provide renewable electricity and heat to local communities.

The definitive feasibility study envisages a Phase 1 operation producing 24 000 t/y lithium hydroxide monohydrate, targeting more than 300 GWh/y of renewable power, and more than 250 GWh/y of renewable heat production.

Vulcan’s combined geothermal energy and lithium resource is the largest in Europe, with licence areas focused on the Upper Rhine Valley, Germany.