Vulcan Energy Resources Limited has completed a preliminary feasibility study for Project Ludwig in Germany, shifting from its previous Phase One baseline toward lower capital intensity and higher project returns across its second development phase.

Project Ludwig delivers a post-tax net present value at an 8% discount rate of €1.73 billion and an unlevered post-tax internal rate of return of 20.2%, compared with the €1.15 billion post-tax NPV and 13.7% post-tax IRR reported for the Phase One Project Lionheart. On a pre-tax basis, the study outlines an NPV of €2.61 billion and an IRR of 25.0%.

The updated economic assessment incorporates total capital expenditure of €1.26 billion at final investment decision, reflecting a 15% reduction in development costs relative to the €1.48 billion estimated for Lionheart. The capital intensity is budgeted at €59,770 per tonne of lithium carbonate equivalent, supported by processing and infrastructure learnings from the company's maiden development.

Located in the Ludwigshafen region approximately 60 kilometres north of Lionheart within the Upper Rhine Valley Brine Field, Project Ludwig is designed to produce an average of 21,100 tonnes per annum of battery-grade lithium carbonate over a 30-year operating life. The operation also targets co-production of 3,125 gigawatt-hours per annum of renewable heat for internal process use and external sales.

Indicated mineral resources for the project stand at 1,251 kilotonnes of lithium carbonate equivalent at 155 milligrams per litre of lithium, representing a 91% increase over previous figures, alongside an inferred resource of 2,230 kilotonnes. The study also establishes a maiden geothermal resource estimate of 193 petajoules indicated and 295 petajoules inferred.

“Project Ludwig represents the strategic next step in our phased development of the Upper Rhine Valley Brine Field. We're applying the technical, operational and commercial blueprint of Lionheart to a second development area with similar resource and geological characteristics.”

— Cris Moreno, Managing Director and CEO

Vulcan Energy has commenced an asset-level financing strategy and strategic partner selection process to advance the project. The company aims to target a new production phase every two to three years in the brine field, with a final investment decision for Project Ludwig scheduled to follow the successful start-up and commencement of production at Lionheart, with an FID assumed in 2029.

Read the full announcement: Phase 2 PFS- Improved economics, repeatable growth strategy