Emerging renewable-energy and lithium producer Vulcan Energy has announced a €100-million (A$164-million) institutional placement and strategic placement to support the commencement of critical work on its Phase 1 Lionheart project in Germany.

The company also plans a non-underwritten share purchase plan (SPP) targeting €12.2-million (A$20-million) to allow eligible shareholders to participate.

Proceeds from the placement will fund project execution activities, including the Field Development Plan (FDP), engineering, procurement and construction contracts for key infrastructure, and other capital and operational expenditures. Vulcan CEO Francis Wedin emphasized the significance of the funding initiative.

“This financing will enable us to advance critical path scopes of the Lionheart project, helping Vulcan on its path to becoming the world’s first integrated lithium and renewable-energy producer with a carbon-neutral footprint,” Wedin said.

The placement will issue approximately 28-million shares at €3.57, or A$5.85, a share, representing an 11.9% discount to Vulcan’s last traded price on the ASX. It includes €74-million (A$121-million) from institutional investors and €26-million (A$43-million) from strategic investors.

The non-binding SPP will be open to shareholders registered in Australia or New Zealand as of December 10, 2024, and will provide an opportunity to purchase up to A$30 000 worth of shares. Vulcan has discretion over allocations.

Funds will also support Vulcan’s broader financing strategy, targeting a €2.2-billion project cost through a combination of equity and debt. The company has made progress on debt financing, including conditional approval from Export Finance Australia for €120-million. Equity funding discussions with potential strategic partners are ongoing, with final agreements anticipated in early 2025.

Vulcan aims to leverage its geothermal and lithium extraction technologies to deliver sustainable lithium for electric vehicle batteries and contribute to global decarbonisation efforts.