How ABB is Building Renewable Lithium Supply Chains

Vulcan Energy has appointed ABB as its Main Electrical Contractor for the initial phase of its Lionheart Project.

Located in Germany's Upper Rhine Valley, this landmark initiative is set to become one of Europe’s first fully-integrated operations combining geothermal renewable energy with lithium production.

Lithium is a critical component for the continent's growing battery supply chain and this partnership marks a major step forward in securing a domestic source.

The collaboration will see ABB deliver the complete electrical infrastructure for the project through three contracts valued at over US$50 million.

This comprehensive scope of work includes powering Vulcan’s Lithium Extraction Plant (LEP) in Landau, the Central Lithium Plant (CLP) near Frankfurt and the surrounding well sites that will extract the lithium-rich geothermal brine from deep underground.

Resilient battery supply chain

The project is strategically positioned to address the growing demand for electric vehicles (EVs) and strengthen Europe's self-sufficiency in critical raw materials, a key objective of the EU's industrial policy. By integrating clean energy generation with advanced mineral extraction, the project serves as a potential model for future sustainable industrial developments across the continent.

Björn Jonsson, Global Business Line Manager for Mining & Materials at ABB explains: “The Lionheart Project is a blueprint for how clean energy and advanced electrification go hand in hand.

“We are building the foundations for a stronger European battery supply chain, helping to meet growing demand for electric vehicles at a crucial point in the transition to clean mobility.”

The Lionheart Project is designed to produce 24,000 tonnes of lithium hydroxide monohydrate (LHM) annually. This substantial volume is enough to supply the batteries for approximately 500,000 new EVs each year, providing a boost to Europe's automotive and battery manufacturing sectors which are currently heavily reliant on imported lithium.

Securing the downstream supply chain

A cornerstone of Vulcan Energy’s strategy involves securing the downstream supply chain before production. This approach de-risks the project and demonstrates market confidence in its viability.

Vulcan Energy has already established ten-year offtake agreements for its lithium which is scheduled to begin delivery in 2028.

These binding agreements involve industrial players including automotive giant Stellantis, battery manufacturer LG Corp, cathode producer Umicore and commodities trader Glencore. This diverse range of partners ensures a stable and reliable channel for the lithium once production is underway, creating a robust ecosystem for battery manufacturing across Europe.

During a discussion with Reuters, Francis Wedin, Executive Chair of Vulcan Energy, confirmed the project's readiness.

He stated that construction was now fully funded and would begin. Francis also notes the project would take two-and-a-half years to build with full-scale operations expected to commence after commissioning is complete.

Supply chain optimisation

The foundation for the current contracts was a Memorandum of Understanding (MoU) signed by Vulcan and ABB in April 2024. This initial agreement was strategically designed to streamline complex engineering processes, optimise supply chains through early contractor involvement and lower the project costs.

Under this framework, ABB’s extensive expertise in electrification is leveraged to support Vulcan's proprietary renewable lithium production method. This method, known as Adsorption-type Direct Lithium Extraction (A-DLE), is powered by geothermal heat, making it a more sustainable process than traditional mining.

"ABB’s expertise and systems give us the certainty to scale efficiently," says Cris Moreno, Managing Director and CEO at Vulcan Energy.

, comments on the strategic value of the partnership.

"Together we are establishing a robust model for industrial lithium production to meet market momentum while enabling battery supply chain decarbonisation at scale.”

ABB's work covers the design, engineering, manufacturing and delivery of high-, medium- and low-voltage electrical systems. This includes essential components like switchgear transformers and power supplies, which are intended to create an efficient and uninterrupted flow of electricity from the grid to every process within the facility.

This comprehensive management of the full electrical scope is crucial for ensuring that the plant's performance aligns with both its demanding operational targets and its sustainability standards.