Germany’s Hochtief and its fellow ACS subsidiary Sedgman, a mineral processing company, will be the engineering, procurement and construction management contractor for the €2bn “Lionheart” lithium extraction scheme in Germany.

Developed by Vulcan Energy, Lionheart will extract lithium chloride from mineral-rich geothermal brine buried in large deposits under Germany’s Upper Rhine Valley, and convert it to lithium hydroxide monohydrate for use in electric vehicle batteries.

At the same time, the facility will provide renewable heat to municipal energy provider EnergieSüdwest for the district heating system in the town of Landau.

Vulcan began extracting lithium chloride from wells at the site in 2024. The Lionheart scheme will scale the operation up so that, in its first phase, it can produce 24,000 tonnes of lithium hydroxide monohydrate a year, enough to power 500,000 electric vehicles.

By 2030, the facility is predicted to provide 12% of Europe’s projected demand for lithium hydroxide, used to make batteries and in manufacturing.

Work on the project’s first phase is due to take two and a half years, with production expected to begin in 2028.

Builder and investor

Hochtief and Sedgman will build a €397m lithium extraction plant and a €337m central lithium plant.

Hochtief will also invest €169m in Vulcan Energy: €39m in Lionheart and €130m in Vulcan shares.

“The Lionheart Project is a flagship initiative for Europe’s clean energy future—combining lithium production with renewable energy generation,” said Juan Santamaría, Hoctief chief executive.

“It is a strategic, high-impact project that aligns with our Group’s global capabilities in energy infrastructure.”

The European Investment Bank (EIB) will lend Lionheart €250m.

Funding is also coming from German state and federal governments, commercial parties such as BNP Paribas, ING, Unicredit and export credit agencies from Australia, Canada, Denmark, France and Italy.

Cris Moreno, Vulcan Energy’s managing director, said: “The EIB’s participation underlines the significance of developing a European, sustainable lithium supply chain while supporting local innovation, employment, and a carbon-neutral future.”