Siemens Tightens Grip on European Lithium Supply Chain While Markets Eye May Results

The Munich-based industrial giant is quietly assembling a dual narrative: one that plays out on the factory floor of a critical raw materials project, and another that unfolds on the trading floor as investors await quarterly results. Siemens has secured a pivotal role in Europe’s first fully integrated lithium and renewable energy venture, while its shares take a breather after a strong run.

Shares of Siemens edged 0.7 percent lower to €241.75 on Friday, a modest pullback that masks a 14 percent gain over the past month. The stock continues to trade comfortably above its 200-day moving average, signaling the longer-term uptrend remains intact. The consolidation comes as market participants position ahead of the group’s own second-quarter earnings release on May 13.

A €40 Million Bet on Domestic Lithium

Siemens has signed a framework agreement worth approximately €40 million with Vulcan Energy to serve as main automation contractor for the Lionheart project. The deal covers engineering, automation, telecommunications and building technology systems for two key sites: the lithium extraction facility in Landau, Rhineland-Palatinate, and the central lithium plant at the Höchst Industrial Park in Frankfurt, plus production well sites across the Upper Rhine Graben.

The commitment extends beyond technology delivery. Siemens Financial Services is contributing €67 million to Vulcan’s multi-billion euro financing package, which was already secured in December 2025. Additionally, the two companies have signed a memorandum of understanding designating Siemens as Vulcan’s preferred automation and digitalization supplier through 2035, explicitly covering future project phases beyond Lionheart.

The Lionheart project targets annual production of 24,000 tonnes of lithium hydroxide monohydrate — enough for roughly 500,000 electric vehicle batteries. Classified as a Strategic Project under the EU’s Critical Raw Materials Act, it aligns directly with Europe’s push to reduce dependence on imported raw materials.

For Siemens, the deal fits squarely into its “ONE Tech Company” growth program. The company estimates this opens up an addressable market for industrial software worth $11 billion. The Vulcan engagement combines automation technology with direct capital allocation into critical infrastructure — a template Siemens appears keen to replicate.

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Energy Subsidiary Fires Up Expectations

The group’s listed energy arm, Siemens Energy, provided a significant tailwind on Thursday after sharply raising its full-year targets. Management now expects revenue growth of up to 16 percent, with operating margins climbing to between 10 and 12 percent. The optimism is underpinned by surging demand: order intake jumped nearly 30 percent in the latest quarter to €17.7 billion, prompting the leadership to forecast net profit of around €4 billion.

The Core Business Carries Its Weight

For the parent company, the bar is set high as well. In the first quarter, Siemens booked a 10 percent rise in adjusted orders, while the backlog of unfinished orders hit a record €120 billion. Management responded by lifting the earnings forecast to at least €10.70 per share.

Revenue climbed roughly 8 percent to approximately €19.1 billion in the first quarter, with order intake rising about 10 percent to roughly €21.4 billion. For the full fiscal year, the group targets undiluted net earnings per share of €10.70 to €11.10, alongside comparable revenue growth of 6 to 8 percent.

Alongside operational performance, management is pushing ahead with strategic restructuring. Siemens plans to transfer 30 percent of its expanded industrial software portfolio to shareholders via a spin-off in an initial step, aiming for full deconsolidation. The goal is to position itself more clearly as a pure technology and software provider in the eyes of the capital markets.

Analysts Eye the May Milestone

The majority of analysts view the upcoming quarterly report positively. The average price target from ten recent studies stands at €261.78, almost exactly matching the stock’s all-time high from January. The May results presentation will provide the next concrete test of management’s ambitious margin targets — and reveal whether the strong order momentum in the industrial business can be sustained.