Arverne (FR001400JWR8) and its long‑time partner Equinor Ventures AS have completed a new financing round for Lithium de France, a subsidiary focused on combined geothermal heat and lithium production. The deal consists of a convertible note of up to €33 million that matures on 30 June 2027, a step that moves the project further into its pre‑industrial phase.
Arverne and Equinor Ventures Close €33 M Convertible Note
The financing takes the form of a convertible note for a total amount of up to €33 million, maturing on 30 June 2027. Both Arverne and Equinor Ventures AS will participate at their pro‑rata share. The note stipulates that, upon the completion of a qualifying financing round of €50 million, the principal amount and accrued, uncapitalized interest will convert into shares of Lithium de France. The announcement did not disclose any further terms or conditions beyond the conversion trigger.
Lithium de France Pre‑Industrial Phase and Project Scope
The capital will fund Lithium de France’s pre‑industrial activities, including drilling, construction of a direct‑lithium‑extraction (DLE) demonstration plant, and Front‑End Engineering Design (FEED) work that feeds into a Definitive Feasibility Study. The project targets an annual output of 27,000 tonnes of lithium carbonate—enough to supply roughly 800,000 electric vehicles—and aims to deliver 2.2 TWh of geothermal heat to businesses, farms and local authorities in northern Alsace. Pierre Brossollet, founder and CEO of Arverne, linked the financing to the “Dual Flow strategic plan” and noted that the French State has classified the project among its 150 Major Strategic Projects.
Market Context for Geothermal‑Lithium Integration
Lithium de France represents a rare European effort to couple low‑carbon lithium production with geothermal heat supply. While the announcement does not provide market forecasts, the combined output aligns with growing demand for battery‑grade lithium and for decentralized, low‑carbon heating solutions. Katherine Peachey, Head of Equinor Ventures, reiterated the venture’s confidence in the company’s management and development plans, emphasizing the “sustainable, low‑carbon lithium and geothermal heat production” objective.
Key Takeaways
- Arverne and Equinor Ventures AS issued a convertible note of up to €33 million, maturing 30 June 2027, with conversion triggered by a €50 million qualifying financing.
- The financing will support Lithium de France’s pre‑industrial phase, covering drilling, a DLE demonstration plant, and FEED work for a project targeting 27,000 tonnes of lithium carbonate per year and 2.2 TWh of geothermal heat.
- The project is listed by the French State as one of 150 Major Strategic Projects, highlighting its perceived strategic importance for both lithium supply and geothermal heat in Europe.
EnergyInsyte's Take
The €33 million note provides Lithium de France with the near‑term liquidity needed to advance critical engineering and drilling work, but the conversion depends on securing an additional €50 million. Executives should monitor the upcoming qualifying financing round and any updates to the Definitive Feasibility Study, as those will determine whether the combined lithium‑geothermal model can move toward commercial scale. In the meantime, the project’s inclusion among France’s 150 Major Strategic Projects should help de‑risk the venture and may attract further public‑sector support, making it a watch‑list candidate for investors focused on low‑carbon battery supply chains and renewable heat.
Source: Businesswire
