Stellantis Has Lithium Supply Deal with Vulcan Energy

Stellantis N.V. (NYSE / MTA / Euronext Paris: STLA) and Vulcan Energy Resources (ASX: VUL) today said Vulcan will supply battery grade lithium hydroxide in Europe for use in electrified vehicles to the Stellantis Group. The five-year agreement calls for shipments to begin in 2026. Vulcan will supply Stellantis with a minimum of 81,000 metric tons and a maximum of 99,000 metric tons of lithium hydroxide over the five-year term of the agreement. Stellantis says it will invest more than €30 billion through 2025 in electrification and software development (Stellantis Ups Electrification Strategy by $35.54 Billion).

Stellantis also claims – focused firmly on the capital markets required for enormous funding – that it will be 30% more efficient than the industry with respect to total Capex and R&D spend versus revenues. At the moment there is no factory nor a proven process at Vulcan at the scale needed for mass production. Vulcan too need access to the capital markets to survive. (Stellantis New Credit Line €12B Tops PSA and FCA Combined)

Stellantis targets that more than 70% of its vehicle sales in Europe and more than 40% of vehicle sales in the United States will be low emission vehicles (LEV) by 2030. Each of the company’s 14 – sometimes overlapping – vehicle brands are committed to offering best-in-class fully electrified solutions. Given the ongoing concerns about extreme climate change and increasing government regulations, this is the price of survival in the mobility business.*

Vulcan’s Zero Carbon Lithium Project in the Upper Rhine Valley in Germany uses geothermal energy to produce battery-quality lithium hydroxide from brine without the use of fossil fuels and minimal water usage, reducing the generation of carbon in the battery metals supply chain. (Stellantis, Samsung SDI JV for NA Battery Manufacturing; Stellantis, LG Energy JV for North American Battery Production)

“The Vulcan Zero Carbon Lithium Project also intends to reduce the transport distance of lithium chemicals into Europe, and our location in Germany, proximal to Stellantis’ European giga factories, is consistent with this strategy. We look forward to a long and productive relationship between Vulcan and Stellantis, as we work to achieve our shared sustainability and de-carbonization ambitions,” said Dr. Francis Wedin, Vulcan Managing Director.

*Europe is arguably the fastest growing electric vehicle and lithium-ion battery production center in the world, and the world’s fastest growing lithium market. It has zero local supply, yet at the same time, automakers and governments are pushing for battery raw materials with a zero carbon footprint.

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1 Response to Stellantis Has Lithium Supply Deal with Vulcan Energy

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