vulcan energy (ASX:VUL) has signed a conditional debt commitment letter of €879 million (approximately A$1.45 billion) to fund the first phase of the Lionheart project. The agreement is supported by Export Finance Australia (EFA) and a syndicate of seven commercial banks.

Lionheart is a major lithium and renewable energy initiative based in the Upper Rhine Valley saline fields straddling Germany and France. The project aims to harness natural heat to create battery-grade materials and produce lithium from underground brine, and is designed to support Europe’s electric vehicle supply chain and energy transition goals. has been.

This conditional commitment represents an important step in Vulcan’s financing strategy. The financing package includes a €120 million direct loan from EFA, with the remainder coming from four “structured banking” groups (ABN AMRO, ING, Natixis CIB, UniCredit) and three other international Provided by Project Finance Bank. The commitment is subject to due diligence, regulatory approvals and final completion of legal documentation and is expected to close in the first half of 2025.

Vulcan is targeting a total debt package of between €1.5 billion and €1.6 billion, with additional commitments expected from Export Development Canada (EDC), Bpifrance and SACE. The European Investment Bank (EIB) has already expressed support for the project.

The stock is trading 2.08% higher at $5.89.