Vulcan Energy Begins Construction Phase with Lionheart Drawdown, Yet Shares Languish Near Low
Published on 07/17/2026 at 07:55 | Redaktion boerse-global.de
Vulcan Energy has taken the first concrete step toward building its geothermal and lithium assets in Germany, drawing an initial tranche from the €2.2bn Lionheart financing package on July 16, 2026. The move transitions the company from paper commitments to site work — a critical juncture for any European lithium developer. Yet the stock barely reacted, closing at €1.70, just a few cents above the 52-week low of €1.65 touched three days earlier.
The package is backed by a blue-chip syndicate including Siemens Financial Services, HOCHTIEF and Demeter, with legal advice from White & Case on the corporate side and Clifford Chance representing the investors. Vulcan has not disclosed the exact sum of the first drawdown, but the milestone coincides with a flurry of operational news: a building permit for a lithium plant in Frankfurt, a geothermal power plant contract, and the appointment of Roberto Gallardo to the board. The company also references a separate Phase-One financing and a $2.6bn funding target for its broader lithium project.
Alongside the Lionheart package, Vulcan is benefiting from Germany’s push for domestic raw material security. The Deutschlandfonds, launched in December 2025, has begun allocating capital, with a dedicated raw materials fund set to expand to €1.5bn. Of that, €150m is earmarked for Vulcan’s lithium operations and €50m for Arafura Rare Earths. KfW Capital has also invested €185m in venture-capital funds. The government’s backing reinforces Vulcan’s role in Berlin’s strategy to reduce reliance on imported critical minerals.
Should investors sell immediately? Or is it worth buying Vulcan Energy?
Despite the financial and political tailwinds, the stock remains under pressure. It now sits 17.42% below its 50-day moving average of €2.07, and the relative strength index of 34.8 points to oversold conditions — though no stabilization has materialized. The broader lithium sector is partly to blame: Chinese lithium carbonate futures have fallen about 20% recently, and spodumene concentrate prices have dropped roughly 12%. Other producers such as Mineral Resources and Pilbara Minerals have also seen sharp declines, with some analysts describing them as entering bear-market territory.
The disconnect between project milestones and share price is not confined to Vulcan. Standard Lithium hit a fresh 52-week low on the same day, despite having beaten earnings estimates. For Vulcan, the question is whether the Lionheart drawdown will soon be reflected in visible construction progress — and whether that will be enough to reverse the market’s skepticism while lithium prices remain under siege.
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