The Federal Government, together with Rhineland-Palatinate and Hesse, is supporting two strategically important investment projects for lithium extraction in Germany
Introduction
The Federal Ministry for Economic Affairs and Energy (BMWE), together with Rhineland-Palatinate and Hesse, is supporting two related investment projects for the important raw material lithium. This represents a further step toward a secure and affordable supply of raw materials for the German economy – a central economic policy goal of the federal government. The projects for the extraction and further processing of lithium will be carried out at sites in Hesse and Rhineland-Palatinate by German subsidiaries of Vulcan Energy Ressourcen GmbH .
In times of growing geopolitical challenges, it is necessary to make increased efforts at the European and national levels to open up alternative sources of raw materials for the domestic economy.
Lithium is a key component of high-performance batteries and, as a raw material, is of great importance, particularly for the automotive industry. By supporting Vulcan Energy ‘s investment projects in Hesse and Rhineland-Palatinate, we are helping to establish sustainable lithium production in Germany. In doing so, we are reducing existing dependence on raw materials and strengthening the resilience of our supply chains. This is a key prerequisite for the competitiveness of our economy.
Vulcan Energy is investing a total of €690 million in the projects in Hesse and Rhineland-Palatinate. The federal government is providing a total of €103.6 million, of which the federal states of Rhineland-Palatinate and Hesse are each co-financing 30 % .
In the Rhineland-Palatinate subproject, Natürlich Landau Lithium GmbH is planning a new type of lithium extraction plant in Landau. This plant will extract lithium chloride from local geothermal brine using a highly innovative and resource-efficient process. In March 2025, the project was approved by the EU Commission asstrategic project under the Critical Raw Materials Act in the EU .
Daniela Schmitt, Rhineland-Palatinate Minister for Economic Affairs, Transport, Agriculture and Viticulture, said:
I am pleased that Rhineland-Palatinate can make an important contribution to strengthening Germany as an industrial location with this lithium project.
It is an investment in the future viability of the German economy. Through domestic lithium production, we can supply our industries with raw materials more reliably. We are becoming less dependent on other raw materials markets, offering reliable supply chains, and contributing to the strengthening of climate-friendly technologies – such as the use of batteries to store renewable electricity. Rhineland-Palatinate, Germany, and the EU economy as a whole will benefit from the lithium project in Landau.
In the Hesse subproject, Vulcan Projektgesellschaft 2 GmbH is building a conversion plant in Frankfurt-Höchst. This plant will further process the lithium chloride produced in Landau into lithium hydroxide monohydrate. Lithium hydroxide monohydrate is a key starting material for modern lithium-ion batteries and thus a key raw material for electromobility and other energy storage applications.
Hesse’s Minister of Economic Affairs, Kaweh Mansoori, says:
With this technology, we are setting a milestone for greater independence, sustainability, and competitiveness in battery cell production,
“Climate-neutral lithium extraction from regional resources is an important building block for the mobility and energy transition. For Hesse, this project is a strategic investment in the future: It strengthens our high-tech location, secures jobs, and creates prospects for future generations.
Since 2023, lithium has been on the list ofLithium is considered to be one of the EU ‘s “strategically important raw materials .” As a key component of high-performance batteries, lithium is of great strategic importance. At the same time, global lithium production, especially its processing into battery-grade material, is concentrated in a few countries.
The basis for the funding is the funding guideline published by the BMWE in 2023“Resilience and Sustainability of the Battery Cell Manufacturing Ecosystem” based on the “Federal Regulation on Transformation Technologies .” This measure will promote capacity building along the battery value chain and support strategic investments to ensure a resilient lithium supply for European battery cell manufacturing.
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The Federal Government, together with Rhineland-Palatinate and Hesse, is supporting two strategically important investment projects for lithium extraction in Germany, source
