Vulcan Energy (ASX:VUL) has signed an offtake agreement with Glencore (LSE:GLEN) to provide battery-quality lithium hydroxide monohydrate (LHM) from the phase one Lionheart Project in Europe.
Lionheart, located in the Upper Rhine Valley bordering Germany and France, will have capacity to produce 275 gigawatt per hour of power and 24,000 tonnes of LHM. Lionheart’s capacity is enough power and LHM to cater to 500,000 battery electric vehicles per year.
Under the eight-year deal, Glencore will purchase between 36,000 and 44,000 tonnes of battery-quality LHM – which represents 20% of Vulcan’s current planned output over the period. The agreement is subject to finalising project financing, as well as beginning commercial production and product qualification.
Vulcan, which has a market capitalisation of $1.59 billion, expects to start commercial production during 2028 and product qualification the following year.
CEO Cris Moreno says Vulcan has achieved a good mix of offtake partners for the phase one lithium production: an automaker, a battery maker, a cathode manufacturer, and a commodities trader.
“The agreement also gives Vulcan the flexibility to bring in further European customers in the future, while also utilising Glencore’s expertise in this market, which is a value-add to Vulcan,” Moreno says.
Glencore Head of Lithium Robin Francois adds that the agreement further expands the company’s lithium portfolio and reinforces its position as a supplier of battery raw materials.
Vulcan Energy is an integrated lithium and renewable energy business to decarbonise battery production.
Glencore is a globally diversified natural resources company and a major producer and marketer of more than 90 commodities.
According to the Department of Industry, Science and Resources (DISR) latest Resources and Energy quarterly report, lithium hydroxide prices have seen an almost 20% recovery. Prices have risen from around US$7,550 per tonne to US$9,000 in late August 2025.
DISR says the recovery in lithium prices reflects the ongoing demand growth and production curtailments.
Global electric vehicle sales are also forecast to grow 18% during 2025, driven by rising adoption rates in China.
Write to Aaliyah Rogan at Mining.com.au
Images: Vulcan Energy
