Vulcan Energy Resources Ltd (ASX: VUL) shares are starting the week positively.
In morning trade, the ASX lithium stock is up almost 3% to $3.62.
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Why is this ASX lithium stock rising?
Investors have been buying the lithium developer's shares this morning after it released a big announcement relating to its flagship Lionheart Project in Germany's Upper Rhine Valley.
According to the release, the ASX lithium stock has entered into a 40 million euros major project framework agreement with Siemens for the supply of engineering, automation, telecommunications, and building technology systems.
The company notes that Lionheart involves the construction of an integrated lithium and renewable energy project targeting production capacity of 24,000 tonnes of lithium hydroxide monohydrate (LHM) over an estimated 30-year project life. This is enough for around 500,000 electric vehicle batteries per year.
In addition, the project is expected to co-produce 275 GWh of renewable power and 560 GWh of heat per year for local consumers.
Final major contract
The signing of the agreement with Siemens represents the final major supply agreement for Lionheart. Management notes that the balance of major works agreements were signed in the latter half of 2025.
Siemens will act as the Main Automation Contractor (MAC) for the ASX lithium stock's upstream commercial Lithium Extraction Plant in Landau, which is already under construction, downstream Central Lithium Plant at Industrial Park Höchst in Frankfurt, and production well sites.
This will include engineering and delivery of the distributed control system, industrial network and cybersecurity infrastructure, building automation, safety systems, and associated design and lifecycle services.
The agreement with Siemens follows a memorandum of understanding that both parties entered into in 2025 to acknowledge Siemens as a preferred supplier until December 2035 for both Lionheart and future phases of development.
Siemens Financial Services has agreed to invest 67 million euros as part of Vulcan's 2.2 billion euros ($3.9 billion) financing package that was secured in December.
Commenting on the news, the ASX lithium stock's managing director and CEO, Cris Moreno, said:
The signing of this framework agreement with Siemens AG builds on our established partnership with the broader Siemens group which shares Vulcan's commitment to innovation and sustainability. We are pleased to be working alongside Siemens who have a vast local presence and history working in the broader region, and bring decades of experience in delivering engineering, automation, telecommunications, and digital technology systems to similar types of industrial projects.
With construction under way, the stage is set for Vulcan and our key partners to deliver our flagship Lionheart Project, which will deliver Europe's first fully domestic and sustainable lithium supply chain.
