Australia's Vulcan Energy said Wednesday it will soon start building a German lithium production project that will provide enough of the metal for half a million electric car batteries a year.

The group said it had secured a 2.2 billion euro ($2.5 billion) financing package that will allow it to go ahead with developing its Lionheart project, in Germany's Upper Rhine Valley.

Previously the project had been in a pilot phase but development is set to get underway in the coming days, with commercial lithium production targeted from 2028, said Vulcan.

The initiative will produce a key component in the lithium-ion batteries widely used in electric vehicles, and the news comes as Europe is racing to secure its own supplies of critical materials.

"Lionheart is set to redefine lithium producti

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