Vulcan Energy Resources has outlined a second large-scale lithium project in Germany’s Upper Rhine Valley, with estimated capital expenditure of €1.26 billion for Project Ludwig. Located about 60 km north of the Lionheart project, Ludwig is expected to produce approximately 21,100 tonnes per year of battery-grade lithium carbonate over a projected operating period of around 30 years. The preliminary feasibility study estimates total production of approximately 517,000 tonnes of lithium carbonate over the project’s life.
Project Economics and Production
Project Ludwig has an estimated post-tax net present value of €1.73 billion, calculated using an 8% discount rate, and a post-tax internal rate of return of 20.2%. The study uses a lithium carbonate price assumption of €20,588 per tonne and estimates C1 operating costs at €4,101 per tonne. The €1.26 billion capital estimate includes a 15% contingency. Alongside lithium production, the project is expected to generate approximately 3,125 GWh of renewable heat annually.
Geothermal Brines and Lithium Extraction
Project Ludwig would combine geothermal energy production with lithium extraction from underground brines, using geothermal reservoirs for both resource extraction and renewable heat and power generation. Vulcan’s approach differs from conventional hard-rock lithium mining by extracting lithium from geothermal brines rather than relying on conventional mining and crushing operations.
The development model places greater emphasis on well performance, brine chemistry, reinjection and direct lithium extraction technology operating at commercial scale. The preliminary feasibility study provides the first detailed economic benchmark for Vulcan’s second development phase and expands its planned production platform beyond a single operation.
Financing, Engineering and Permitting
The €1.26 billion capital requirement leaves Project Ludwig exposed to changes in lithium prices, construction costs and the performance of its lithium extraction and conversion systems. Its projected 20.2% post-tax return is based on the assumptions contained in the preliminary feasibility study, while Vulcan must first demonstrate reliable commercial operation at Lionheart.
Further engineering, reservoir assessment and permitting will be required before Project Ludwig can progress towards a final investment decision. If both projects advance, Vulcan could establish a larger European lithium-production platform based on a common geothermal and processing model.
