Stellantis invests €50 million in Vulcan Energy to boost low-carbon LiOH for EV production
Stellantis N.V. and Vulcan Energy Resources have announced the former's €50 million equity investment in Vulcan Energy, along with an extension of the original binding offtake agreement to 10 years. The latest investment is expected to increase low-carbon production of lithium hydroxide (LiOH) needed for Stellantis' production of EVs in Europe.
The equity investment will go towards Vulcan's planned production expansion drilling in its producing Upper Rhine Valley Brine Field (URVBF). The company 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'.
"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," said Carlos Tavares, Stellantis CEO.
"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", he added.
Vulcan's Managing Director Dr Francis Wedin, said, "Stellantis' significant investment in Vulcan and the Zero Carbon Lithium™ Project represents a strong statement by one of the world's largest automakers regarding sustainable and strategic sourcing of battery materials".
"We are fully aligned with Stellantis' decarbonisation and electrification goals, which represent some of the most ambitious in the industry. It is encouraging to see a leading automaker investing in local, low carbon lithium production for electric vehicles. As our largest off-taker, we look forward to deepening our relationship with Stellantis as a substantial shareholder in Vulcan and our Zero Carbon Lithium business", he added.
With this, Stellantis becomes second largest shareholder in Vulcan Energy. As part of the Dare Forward 2030 strategic plan, Stellantis' vision is to achieve 100 percent of passenger car battery electric vehicle (BEV) sales mix in Europe by 2030.
