Release date: 22 February 2024
Promoter – Financial Intermediary
VULCAN ENERGY RESOURCES LTDLocation
Description
The project intends to produce 24 kt/yr of battery-quality lithium hydroxide, by combining extraction from the underground brine with associated geothermal plants under a closed fluid cycle, a lithium extraction plant and a refining plant. It will also produce electricity to cover most of its own consumption and heat for district heating in nearby towns, thereby targeting net-zero emissions. The project will be mostly located in the Upper Rhine Valley of Germany, which is Europe's largest lithium resource. Its scope corresponds to the first phase of a larger development scheme and it will benefit from the experience of an existing demo-plant.
Objectives
The production of battery grade lithium LHM - a critical raw material (CRM) to be used in particular to for EV batteries - will contribute to the EU's green transition and to the achievement of the European Green Deal ambition to become climate neutral by 2050. As such, the project is in line with the EU Key Enabling Technologies and Strategic Energy Technology (SET) Plan objectives, contributing to increased EU autonomy and resilience in industrial ecosystems for e-mobility and batteries. The project falls under Main Policy Priority area (Environment and resources / Sustainable critical raw materials value chain) for projects supporting the sustainable supply and processing of critical primary raw materials with the main objective of building production capacity for the purpose of large-scale competitive commercialisation. The lithium processing plants are eligible for climate action as mitigation. The output of the production plant is battery grade LiOH, which is used to produce battery active material (BAM). The project therefore falls within the scope of the activity '3.4 Manufacture of batteries' in the Taxonomy Climate Delegated act and fulfils the substantial contribution criteria for climate change mitigation, since the 'Manufacture of respective components (battery active materials, battery cells, casings and electronic components)' is also covered. Therefore the project is eligible under Article 309 point (c) common interest. The energy elements of the project are in line with EU and EIB policy objectives on climate action (mitigation) and are also fully in line with national renewable energy penetration targets for the electricity grid and for district heating. They will generate both environmental and health benefits, in particular by replacing fossil-fuels with the integration of low-carbon, more sustainable, baseload renewable sources.
Sector(s)
Proposed EIB finance (Approximate amount)
EUR 500 million
Total cost (Approximate amount)
EUR 1400 million
Environmental aspects
Various parts of the project have been screened separately for eventual Environmental Impact Assessment (EIA) processes, as falling under Annex II of the EIA Directive (2014/52/EU amending 2011/92/EU). So far, only the Organic Rankine Cycle (ORC) power plant has been screened in. Several wells have been individually screened-out and many screening decisions for wells, pipeline and lithium extraction plant are pending. In addition, screening decisions are taken by different authorities, e.g. geothermal wells by the German Mining Authority. As the central lithium plant will be located in an existing Chemical Park, it is covered by an existing permit. Where and if applicable, the requirements of the Environmental Impact Assessment Directive 2011/92/EU as amended by Directive 2014/52/EU, Birds Directive 2009/147/EC and Habitats Directive 92/43/EEC as well as the Industrial Emissions Directive 2010/75/EU and the EU Directive on Energy Performance of Buildings and the requirements of social standards will be verified during appraisal.
Procurement
If applicable, the EIB will require the promoter to ensure that contracts for project implementation have been tendered in accordance with the applicable EU procurement legislation, Directive 2014/23/EU / 2014/24/EU / 2014/25/EU as well as Directive 92/13/EEC or Directive 89/665/EEC as interpreted by the Court of Justice of the EU, with publication of tender notices in the EU Official Journal, as and where required.
Status
Under appraisal - 7/02/2024
Disclaimer
Before financing approval by the Board of Directors, and before loan signature, projects are under appraisal and negotiation. The information and data provided on this page are therefore indicative.
They are provided for transparency purposes only and cannot be considered to represent official EIB policy (see also the Explanatory notes).