Hamburg – A team headed by lead partners Dr Holger Kraft and Dr Marc Riede as well as Dr Stefan Kühl and Julia Fünfgeld provided comprehensive legal advice to the German promotional bank KfW on its investment in Vulcan Energie Ressourcen GmbH within the framework of the raw materials fund initiated by the German government. In addition to advice on corporate law, which included in particular drafting and negotiating the complex transaction documentation, the advice focused on regulatory and financing issues.
The German federal government's raw materials fund, through the German promotional bank KfW, is investing up to EUR 150 million in Vulcan Energie Ressourcen GmbH, helping to strengthen the resilience of the European and German raw materials supply. The company is part of the Vulcan Energy Group and is developing the Lionheart project in the German Upper Rhine Valley, which is expected to produce around 24,000 tonnes of climate-neutral lithium hydroxide as well as over 275 GWh of electricity and up to 560 GWh of renewable heat per year once completed. The extracted lithium hydroxide will be used for European battery production in particular. In parallel to the investment of the raw materials fund by KfW, other industrial partners have made equity investments in the project. Furthermore, extensive debt financing has been secured for the project. The total investment volume is over EUR 2 billion. The transaction is currently awaiting regulatory approval.
The raw materials fund aims to promote projects in Germany and abroad that contribute to securing raw material supplies and benefit the extraction, processing and recycling of critical raw materials. At the same time, the raw materials fund is intended to reduce Germany's dependence on other countries.
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