Manufacturing development is set to gain momentum as CIMIC Group has reported that its parent company, ACS Group, has expanded its strategic partnership with Vulcan Energy to deliver what is described as Europe’s largest lithium production project.
In a news release, CIMIC said the agreement gives ACS Group an end-to-end role in developing Vulcan’s lithium production and processing infrastructure through its company Sedgman, which has more than four decades of experience in critical minerals essential to clean energy, advanced manufacturing, and digital infrastructure.
ACS Group and HOCHTIEF Chief Executive Officer and CIMIC Group Executive Chairman Juan Santamaría said the Lionheart Project represents a major milestone for the region.
“The Lionheart Project is a flagship initiative for Europe’s clean energy future – combining lithium production with renewable energy generation,” Santamaría said. “It is a strategic, high-impact project that aligns with our Group’s global capabilities in energy infrastructure.”
He added that ACS’s investment reflects confidence in the development’s long-term outlook. “As a shareholder in Vulcan Energy, we are proud to support the delivery of this important project and to contribute the combined strengths of Sedgman and HOCHTIEF,” he said.
“Our expertise in mineral processing and infrastructure makes us ideal partners for a development of this scale and significance.”
Under the expanded partnership, Sedgman and HOCHTIEF Infrastructure have been appointed Engineering, Procurement and Construction Management contractors for Vulcan’s Lionheart Project, overseeing the €397 million Lithium Extraction Plant and €337 million Central Lithium Plant.
HOCHTIEF will also invest €169 million in Vulcan, comprising €39 million in project investment and up to €130 million in Vulcan shares, and has been named preferred supplier for civil construction works.
Sedgman Managing Director Grant Fraser said the partnership reinforces Sedgman’s established technical capabilities.
“Our partnership with Vulcan Energy underscores Sedgman’s deep expertise across a wide range of critical minerals, our track record of global delivery and technology integration, and our team’s existing work on the Lionheart Project,” Fraser said.
HOCHTIEF Infrastructure Chief Executive Officer Ignacio Legorburo said the company will leverage its European project experience. “We are contributing our comprehensive experience in executing complex infrastructure projects in Europe and our network of exceptional partners to ensure the project’s rapid and efficient execution,” Legorburo said.
According to CIMIC, the Lionheart Project, based in the Upper Rhine Valley, is expected to produce 24,000 tons of battery-grade lithium hydroxide monohydrate each year while also generating renewable heat and power.
CIMIC noted it has secured supply agreements with key customers in Europe’s battery value chain and has been awarded EU Strategic Project status under the Critical Raw Materials Act.
Vulcan has also reportedly received €204 million in government grants and secured a total funding package of €2.193 billion, including a €250 million cornerstone loan from the European Investment Bank.
CIMIC said Sedgman and HOCHTIEF Infrastructure will oversee the project from engineering through commissioning, with the combined plants expected to produce enough lithium material to supply around 500,000 electric vehicle batteries annually, using a zero-fossil-fuel production process.
