Resilient financing models for the sustainable transformation

This article is based on an analysis originally posted by the Opens in a new tabRocky Mountain Institute. 

An example that impressively illustrates this dynamic is the financing of Vulcan Energy's Lionheart project in the Upper Rhine Valley. The project uniquely combines geothermal energy, lithium extraction from hot thermal waters and processing into battery-grade lithium hydroxide into a single, integrated process. In December 2025, the complex financing of 2.2 billion euros was successfully completed. ING also played a central role as a Pathfinder and Documentation bank.

“This transaction marks an important milestone in Europe’s ambition to secure sustainable access to critical raw materials,” said Erik van Doezum, Head of Metals, Mining and Fertilizers at ING Germany. “It clearly demonstrates how innovative financing structures and close collaboration across stakeholders can play a decisive role in accelerating the transition toward a resilient, low‑carbon economy. At ING, we are happy to play our role in this transition.”

A resilient financing

The lithium industry is characterized by strongly fluctuating prices. In order to give investors planning security, Vulcan relied on a well-thought-out pricing logic that combines fixed, variable and capped price components and strong offtake partners. At the same time, Vulcan has invested time and resources (e.g. by building two demo plants) to mitigate the technical risks. Coupled with the deliberately conservative capital structure, this made robust debt sizing possible.

A signal to the market

In times of geopolitical uncertainty, when many large decarbonization projects are under pressure, the successful structuring of the Lionheart project has a signal effect. The transaction shows that capital is available for sustainable industrial innovations – if risks are addressed transparently, technological maturity is clearly recognizable and banks, investors, companies and regulators come together to one table. At ING, we support companies in developing such resilient models – and thus actively driving forward Europe's sustainable transformation. And for it to succeed, individual cases must become scalable financing models.