Vulcan Energy Resources has contracted with Expro to conduct geothermal well testing at its Lionheart project in Germany, as the lithium developer progresses toward commercial operations despite recent declines in its stock price. The testing is a crucial step in preparing for lithium and geothermal energy production at the site.
The company’s shares recently hit a 52-week low, but Vulcan Energy is continuing to advance its flagship European project. The contract with Expro secures the necessary expertise for the next phase of development.
Expro will conduct testing on the first well using a specialized surface testing system designed to analyze the properties of the thermal water reservoirs. According to the company, this data is essential to maximizing the yield of both heat and dissolved lithium.
In January, Vulcan Energy reported promising flow rates of up to 125 liters per second from a side track of the well. The new contract builds on these results and expands the technical foundation for future tests to fully characterize the reservoir.
The Lionheart project has been designated as a strategic initiative by the European Union under the Critical Raw Materials Act, aimed at reducing Europe’s reliance on battery-grade lithium. This recognition underscores the project’s importance to the region’s energy independence.
Advertisement
Financing for the first phase of expansion is already in place, totaling approximately €2.2 billion, with a 60/40 debt-to-equity ratio. Key investors include KfW Bank, providing €150 million, and construction group Hochtief, contributing €169 million in equity.
Vulcan Energy anticipates a significant increase in production by 2028. At full capacity, the first phase of the project is expected to produce enough lithium hydroxide for 500,000 electric vehicle batteries annually, while similarly supplying climate-neutral district heating to approximately 90,000 households in the region. Product samples from a pilot operation launched in 2021 were dispatched to potential customers last year.
Despite these advancements and secured funding, the market has not yet fully recognized the company’s progress. On Tuesday, March 25, 2026, the stock reached a new 52-week low of €1.80, representing a loss of over 31 percent in value since the beginning of the year. The discrepancy between operational progress and investor skepticism remains a key challenge for the company.
Advertisement
