Vulcan Energy has strengthened its global lithium position with the completion of a preliminary feasibility study (PFS) for its Project Ludwig opening up national and international critical minerals supply chain opportunities.
Located in the Ludwigshafen region of the Upper Rhine Valley Brine Field in Germany, approximately 60km north of Lionheart, Project Ludwig is designed to leverage Vulcan’s existing brine system, proprietary lithium extraction technology, drilling capability, permitting experience and project delivery expertise.
The PFS outlines a 30-year operation producing 21,100 tonnes per annum (tpa) of battery-grade lithium carbonate, alongside 3,125 gigawatt-hours (GWh) per year of renewable heat for internal use and external sales.
Project Ludwig has a pre-tax net present value (NPV) of €2.6 billion ($4.2 billion) and internal rate of return (IRR) of 25 per cent, while post-tax NPV is $2.7 billion with an IRR of 20.2 per cent.
Vulcan said total capital expenditure of $2 billion represented a 15 per cent reduction in capital intensity compared with Lionheart, reflecting lessons from the first phase, increased project maturity and a simplified development concept.
The project also has an operating cost of $6,630 per tonne of lithium carbonate equivalent (LCE), which Vulcan said places it in the lowest industry quartile.
Managing director and chief executive officer Cris Moreno said the project represented the next step in the company’s phased development of the Upper Rhine Valley Brine Field.
“The growth potential of our assets is significant, and supports the potential for numerous future phase projects, where our engineering and construction teams can transition between developments,” Moreno said.
Project Ludwig’s indicated mineral resources increased 91 per cent to 1,251 kilotonnes (kt) LCE at 155 milligrams per litre lithium, while Inferred Mineral Resources increased 5 per cent to 2,230kt LCE.
The project also has a maiden geothermal resource estimate of 193 petajoules (PJ) in the Indicated category and 295PJ in the Inferred category.
Vulcan’s longer-term development strategy envisages targeting a new production phase every two to three years across its approximately 2,000 square kilometre licence area in the Upper Rhine Valley Brine Field.
Under the proposed sequencing, a Final Investment Decision (FID) on Project Ludwig would follow the commencement of production at Lionheart.
Lionheart had attracted approximately €500 million of investment over eight years by the time of its FID, including about €95 million for lithium extraction technology development.
The company has commenced an asset-level financing strategy for Project Ludwig, with strategic partner selection processes also underway.
Moreno said Vulcan could advance the second phase using the existing development blueprint without taking focus away from Lionheart.
“Project Ludwig represents the strategic next step in our phased development of the Upper Rhine Valley Brine Field,” he said.
“We look forward to advancing Project Ludwig using our existing blueprint in the same brine field, with the same bankable lithium extraction technology.”