Stellantis takes 8% stake in Vulcan Energy, extends lithium hydroxide offtake agreement to 2035
28 June 2022
Stellantis has made a €50-million equity investment in lithium producer Vulcan Energy Resources Ltd. and extended the original binding lithium hydroxide offtake agreement (earlier post) to 2035. With the resultant 8% shareholding, Stellantis will become the second-largest shareholder in Vulcan.
The equity investment will go towards Vulcan’s planned production expansion drilling in its producing Upper Rhine Valley Brine Field (URVBF). Vulcan is already producing geothermal energy from its URVBF and plans to produce lithium hydroxide with zero fossil fuels and net zero carbon footprint as part of the Zero Carbon Lithium Project.
Upper Rhine Valley Brine Field (URBVF), showing license areas and key operations areas making up Vulcan’s integrated renewable geothermal energy and Zero Carbon Lithium business.
Making this highly strategic investment in a leading lithium company will help us create a resilient and sustainable value chain for our European electric vehicle battery production. We continue our quest of forming strong relationships with partners who share our values as we collectively fight against global warming and provide clean, safe and affordable mobility to our customers.—Carlos Tavares, Stellantis CEO
As part of the Dare Forward 2030 strategic plan, Stellantis announced plans of reaching 100% of passenger car battery electric vehicle (BEV) sales mix in Europe and 50% passenger car and light-duty truck BEV sales mix in the United States by 2030.
Stellantis has increased planned battery capacity by 140 GWh to approximately 400 GWh, to be supported by five battery manufacturing plants in Europe and North America, together with additional supply contracts.
Stellantis recently announced its North American lithium hydroxide supply agreement with Controlled Thermal Resources in California. (Earlier post.)