Stellantis signs lithium supply agreement with Vulcan Energy
- Agreement supports decarbonized supply of essential raw materials for battery packs in electrified vehicles
- Key element to fuel Stellantis’ aggressive electrification strategy
AMSTERDAM, November 29, 2021 – Stellantis NV (NYSE / MTA / Euronext Paris: STLA) (“Stellantis”) and Vulcan Energy Resources Ltd. (ASX: VUL) today announced the signing of a binding agreement (“Agreement”) for Vulcan to supply battery grade lithium hydroxide to Europe for use in electrified vehicles to the Stellantis Group. The five-year agreement calls for shipments to begin in 2026.
Vulcan’s supply agreement is part of Stellantis’ electrification strategy, detailed during the EV Day presentation in July 2021, to ensure adequate availability of key raw materials for vehicle battery packs electrified. Stellantis plans to invest more than 30 billion euros by 2025 in electrification and software development, while aiming to remain 30% more efficient than the industry in terms of total capital expenditure and of R&D in relation to revenues.
“Stellaantis is pursuing its electrification strategy with speed and power. This agreement is further proof that we are competitive to deliver on our commitments, ”said Michelle Wen, Director of Purchasing and Supply Chain, Stellantis. “Safe, clean and affordable freedom of mobility represents a strong expectation of our societies and we are committed to meeting them. “
Stellantis aims to have more than 70% of its vehicle sales in Europe and more than 40% of vehicle sales in the United States to be low emission vehicles (LEVs) by 2030. Each of the 14 iconic vehicle brands of the company is committed to offering the best fully electrified solutions in the classroom.
Vulcan’s Zero Carbon Lithium ™ project in Germany’s Upper Rhine Valley uses geothermal energy to produce battery-grade lithium hydroxide from brine without the use of fossil fuels and minimal water consumption , thereby reducing carbon production in the battery metal supply chain.
“The definitive drawdown agreement with Stellantis aligns with our mission to decarbonize the lithium-ion battery and electric vehicle supply chain,” said Dr Francis Wedin, Managing Director of Vulcan. “The Vulcan Zero Carbon Lithium ™ project also aims to reduce the transport distance of lithium chemicals to Europe, and our location in Germany, near the European Stellantis giga-factories, is in line with this strategy. We look forward to a long and productive relationship between Vulcan and Stellantis, as we work to achieve our shared ambitions of sustainability and decarbonization. “
Vulcan will supply Stellantis with a minimum of 81,000 metric tonnes and a maximum of 99,000 metric tonnes of lithium hydroxide over the five-year term of the agreement.
The supply agreement is subject to the successful start of commercial operation of the Vulcan facility and full product qualification.
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Stellantis is one of the world’s leading automakers and mobility provider, guided by a clear vision: to deliver freedom of movement with distinctive, affordable and reliable mobility solutions. In addition to the Group’s rich heritage and broad geographic presence, its greatest strengths lie in its sustainable performance, extensive experience and the diverse talents of its employees working around the world. Stellantis is backed by its extensive portfolio of iconic brands, which was founded by visionaries who instilled a passion and competitive spirit into brands that speak to employees and customers alike. Stellantis aspires to be the biggest, not the biggest, while creating added value for all stakeholders as well as the communities in which it operates.
Vulcan aims to become the world’s leading lithium producer with zero net greenhouse gas emissions. Its ZERO CARBON LITHIUM ™ project aims to produce a battery-grade lithium hydroxide chemical from its combined geothermal energy and lithium resource, which is Europe’s largest lithium resource, in Germany. Vulcan’s unique ZERO CARBON LITHIUM ™ project aims to produce both renewable geothermal energy and lithium hydroxide from the same deep brine source. In doing so, Vulcan intends to meet the demands of the EU lithium market by reducing the high carbon and water footprint of production and the total dependence on imports. Vulcan aims to supply the world’s fastest growing lithium-ion battery and electric vehicle market in Europe. The Vulcan Zero Carbon Lithium ™ project has a resource that can meet Europe’s needs for the transition of the electric vehicle, from a net zero greenhouse gas emission source, for many years to to come.
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