Federal authorities, in collaboration with Rhineland-Palatinate and Hesse, are backing two critical lithium extraction ventures in Germany for strategic purposes
In a significant move towards securing critical raw materials for the German economy, two investment projects for lithium extraction have been funded by the German Federal Government and the states of Rhineland-Palatinate and Hesse. Led by Vulcan Energy, these projects aim to establish a sustainable, domestic lithium supply chain in Germany, essential for electric vehicle (EV) battery production.
The Hesse subproject, spearheaded by Vulcan Projektgesellschaft 2 GmbH, is constructing a conversion plant in Frankfurt-Höchst to process lithium chloride produced in Landau into lithium hydroxide monohydrate. This essential starting material for modern lithium-ion batteries is a key raw material for electromobility and other energy storage applications.
In Rhineland-Palatinate, Natürlich Landau Lithium GmbH is planning a new type of lithium extraction plant in Landau. This project, recognized by the European Union as a strategic project under the Critical Raw Materials Act in March 2025, underscores its importance for European industrial strategy and raw material security.
Together, these projects have received €103.6 million in public funding, accounting for about 15% of the total €690 million investment expected for both projects.
The EU Commission considers these projects strategically important, given Germany and Europe's current reliance on imports from China and South America for lithium production and processing. Vulcan Energy’s initiative, named “Clean Lithium for Battery Cell Production” (Li4BAT), is projected to supply lithium sufficient for the manufacture of around 500,000 EV batteries annually.
By investing in innovative, climate-neutral lithium extraction technologies integrated with geothermal energy, these projects aim to reduce dependency on foreign raw materials, enhance supply chain resilience, and contribute to Germany’s and Europe’s energy transition and technological leadership in battery production.
The funding support is conditioned on securing the full Phase One financing package by September 1, 2025, with construction expected to start following financial closure. Vulcan Energy’s CEO Cris Moreno emphasizes the projects’ role as a sustainable domestic lithium source pivotal for the German and European EV markets.
The projects are being carried out by German subsidiaries of Vulcan Energy Ressourcen GmbH. Hesse's Minister of Economic Affairs, Kaweh Mansoori, states that the project sets a milestone for greater independence, sustainability, and competitiveness in battery cell production. The Hesse project, like the Rhineland-Palatinate project, is an investment in the future viability of the German economy, contributing to the mobility and energy transition.
Rhineland-Palatinate Minister for Economic Affairs, Transport, Agriculture and Viticulture, Daniela Schmitt, stated that the lithium project is an investment in the future viability of the German economy. She further emphasized that it represents a strategic investment in the future, strengthening Hesse's high-tech location, securing jobs, and creating prospects for future generations.
The lithium project in Landau contributes to the strengthening of climate-friendly technologies, such as the use of batteries to store renewable electricity. The funding for these projects is based on the BMWE's 2023 funding guideline, "Resilience and Sustainability of the Battery Cell Manufacturing Ecosystem," which is part of the "Federal Regulation on Transformation Technologies."
In conclusion, these projects represent a major step toward securing critical raw materials for the German economy and strengthening Europe's position in the global lithium market by establishing a sustainable, domestic supply chain for EV battery production.
- The Hesse and Rhineland-Palatinate projects, supported by the German Federal Government and state governments, involve the use of technology in the extraction and processing of lithium for electric vehicle battery production, reflecting the intersection of the technology, finance, and energy industries.
- As part of the European Industrial strategy, the strategic Rhineland-Palatinate project, recognized by the EU, aims to provide a stable supply of lithium, a key raw material in battery production, and strengthen Europe's position in the finance and energy sectors, specifically in electromobility and other energy storage applications.
