Decarbonised lithium company Vulcan Energy Resources has commenced production of lithium hydroxide at its Central Lithium Electrolysis Optimisation Plant (CLEOP) in Frankfurt, Germany.

This initiative is the first to produce sustainable lithium hydroxide domestically in Europe, with an integrated supply chain from upstream raw material extraction to final product.

Approximately 24,000tpa of lithium hydroxide, sufficient to manufacture batteries for roughly 500,000 EVs each year, will be supplied in phase one of the project, named Lionheart.

BNP Paribas and a debt structuring group that includes the European Investment Bank, Export Credit Agencies from Australia, France, Italy and Canada, as well as European banks such as ING, UniCredit, ABN-AMRO and Natixis, will continue the project financing process for Vulcan Energy Resources.

The lithium hydroxide produced by Vulcan comes from high-purity lithium chloride concentrate, processed at the company's adsorption-type direct lithium Extraction (A-DLE) optimisation plant.

The downstream optimisation plant will provide lithium hydroxide for battery-grade qualification with Vulcan's partners including Stellantis, Renault, LG and Umicore, while the construction of the company’s phase one commercial plant is under way.

Strategically located in central Europe, phase one operations by Vulcan are positioned near automotive and battery customers, enhancing cost competitiveness and reducing the carbon footprint.

Vulcan Energy Resources managing director and CEO Cris Moreno said: “First lithium hydroxide production is an important milestone for Vulcan as we demonstrate Europe’s first fully domestically produced lithium from the integration of Vulcan’s upstream production and downstream conversion optimisation plants, and is pivotal for the battery supply chain resilience of both Germany and Europe.

“Importantly, this combination of process allows a very low-cost, highly sustainable, premium product, helping to enable European battery and EV production competitiveness. We look forward to keeping our shareholders updated as we move towards completion of financing and start of commercial construction.”

Additionally, the phase one process will co-produce renewable heat and power, which will be utilised by local communities, aiding in the decarbonisation of nearby industries.