Vulcan Energy's Homegrown Adsorbent Hits 95% Extraction as Lionheart Clock Ticks Toward 2028
Published on 09/22/2026 at 13:20 | Editorial boerse-global.de
Vulcan Energy has begun commercial output of VULSORB, its proprietary alumina-based adsorbent, a step that pushes the German developer past the drawing board and into the industrial phase of its plan to pull lithium from geothermal brine in the Upper Rhine Valley. Test runs under real-world conditions showed the material achieving lithium extraction rates of up to 95%, according to the company.
The timing matters. VULSORB is destined to fill the extraction columns at Project Lionheart, the flagship operation scheduled to come online in the second half of 2028. That first phase is designed for an annual capacity of 24,000 tonnes of lithium hydroxide monohydrate, straddling the German-French border.
A Supply Chain Play With a Geopolitical Edge
Building the adsorbent in-house carries weight beyond the balance sheet. China has long controlled the global market for direct lithium extraction technology and tightened export controls and licensing requirements early last year. Vulcan's own formulation, manufactured through European partners, is meant to underwrite a Western supply chain that does not answer to Beijing.
CEO Cris Moreno framed the production start as a risk-reduction milestone, saying it lowers technology, supply chain and execution risks ahead of first regular output. Beyond feeding its own plants — including Project Ludwig — Vulcan aims to license the technology selectively on the international stage through its VULTEC division.
The Ludwig Blueprint: EUR 1.26 Billion and a 25% IRR
For investors, the central question is no longer the geology beneath the Rhine graben but whether the financing stacks up. Vulcan's feasibility study for Ludwig puts development costs at EUR 1.26 billion, a figure that already includes a 15% contingency buffer. Set against a market capitalization of EUR 659.98 million, the gap lays bare the scale of the capital raise still required.
Should investors sell immediately? Or is it worth buying Vulcan Energy?
The prize, if execution holds, is substantial. Ludwig's study points to 21,100 tonnes of battery-grade lithium carbonate per year, a pre-tax net present value of EUR 2.6 billion (USD 4.2 billion) across a 30-year operating life, and an internal rate of return of 25%. Those numbers rest on the combined extraction of lithium and geothermal energy around Ludwigshafen. The outlook is flanked by the Ilka lithium exploration licence covering the Landau area, valid for six years.
How management structures the funding will decide the outcome for existing shareholders. If a large share comes through grants, debt or strategic partnerships, equity value stays protected. Should bigger tranches be sourced from capital markets, dilution looms large.
Boardroom Change Meets a Bruised Share Price
The operational shift follows a leadership reshuffle just over a week ago, when Angus Barker took the non-executive chair and founder Dr. Francis Wedin moved into an advisory role. The stock last traded at EUR 1.36, having closed the prior session at EUR 1.39, and is down 46% since the start of the year.
The financials reflect the long runway before revenue. For fiscal 2025, Vulcan reported revenue of roughly EUR 7.35 million against a net loss of about EUR 69.58 million, driven by sustained investment in commercializing Lionheart.
What Could Break the Thesis
Two risks stand out. The first is time: the stretch to Lionheart's commissioning in the second half of 2028 is long, and the company will burn capital throughout. Delays in plant construction or cost overruns could force additional financing — and in a soft market, that often means rights issues that spread future earnings across a far larger share count.
The second is technical. The adsorption process for extracting lithium from thermal brine still has to prove it can deliver battery-grade purity at competitive operating costs over decades. Unexpected engineering hurdles would put the projected returns in doubt.
The path forward is now defined by milestones rather than intentions. As long as Lionheart stays on schedule without major cost overruns and VULSORB production holds to spec, the fundamental upside case remains intact. If the financing plan wobbles or Ludwig requires heavily dilutive measures, valuation pressure is likely to take over. The next real catalyst is progress toward Lionheart's commissioning in the second half of 2028 — the point at which the Upper Rhine concept either delivers in practice or falls short.
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