Vulcan Energy Sells Pilot Plant and Secures €2.2bn for Lionheart, Yet Shares Remain Stuck at the Bottom
Published on 07/04/2026 at 08:15 | Redaktion boerse-global.de
China has thrown open its lithium futures market to foreign investors, a move widely expected to reshape global pricing. The Guangzhou Futures Exchange now allows international traders direct access to yuan-denominated lithium carbonate contracts and options, with a 5% discount on US dollar collateral. In May alone, the exchange saw 6.3 million contracts change hands — dwarfing the roughly 1,000 trades on Chicago’s CME and a complete absence of activity in London over the same period.
Against that backdrop, the lithium spot price has climbed to nearly $24 per kilogram, driven by tight supply and maintenance shutdowns at Chinese chemical plants. Yet Vulcan Energy’s stock keeps sliding. The German geothermal lithium developer ended last week at €1.88, having shed roughly 21% over the past month and about 28% since the start of the year. The shares notched a weekly gain of barely 1%, confirming that the macro tailwind has yet to lift the stock.
Management is trying to refocus the business. Vulcan recently sold a legacy pilot plant to a subsidiary of Cosmos Exploration for €1 million, receiving an initial tranche of €125,000. The buyer intends to test the technology with brines from Bolivia. The divestment allows Vulcan to channel resources toward its flagship Lionheart project, a €2.2 billion geothermal lithium operation in the Upper Rhine Valley. Lionheart is designed to produce 24,000 tonnes of lithium hydroxide annually — enough to power roughly half a million electric cars — while also supplying renewable electricity and heat.
Should investors sell immediately? Or is it worth buying Vulcan Energy?
Institutional investors appear to see value at these distressed levels. State Street, the US asset manager, increased its stake in late June to just over 3% of voting rights, taking advantage of the share price weakness.
Technically, the picture remains grim. The stock trades well below its 50-day moving average and a staggering 28% beneath the 200-day line at €2.60. The relative strength index sits at 39.9, deep in bearish territory. With a 52-week low of €1.77 looming and a 57% volatility band reflecting acute investor nervousness, the shares are teetering on the edge of a fresh low. The next major catalyst is the quarterly report due on July 30, 2026, when the market will scrutinise construction milestones at Lionheart’s sites in Landau and Frankfurt-Höchst — and whether management can keep both the schedule and the budget on track.
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