Stellantis to source CO2-neutral lithium from Vulcan

The Stellantis Group and Vulcan Energy Resources Ltd. have announced the signing of a binding agreement. According to this agreement, Vulcan will supply the Stellantis Group in Europe with battery-grade lithium hydroxide for electrified vehicles. The five-year contract stipulates that deliveries will begin in 2026. The supply agreement with Vulcan is part of Stellantis' electrification strategy, which was presented during EV Day in July 2021. This is intended to ensure the sufficient availability of key raw materials for the battery packs of electrified vehicles. Stellantis plans to invest more than 30 billion euros in electrification and software development by 2025. At the same time, the company aims to remain 30 percent more efficient than the industry in terms of overall investments and R&D spending relative to revenue.

"Stellantis is driving its electrification strategy quickly and consistently. This agreement is further proof that we have the competitive spirit to achieve our goals," says Michelle Wen, Chief Purchasing and Supply Chain Officer of Stellantis.

Safe, clean, and affordable mobility is demanded by our society. By 2030, over 70 percent of Stellantis' sales in Europe and more than 40 percent in the USA are expected to come from low-emission vehicles (LEVs). All 14 corporate brands are committed to offering the best fully electrified solutions in their class. Vulcan's Zero Carbon Lithium Project in the Upper Rhine Valley in Germany uses geothermal energy to produce battery-grade lithium hydroxide from brine without fossil fuels and with minimal water consumption. This reduces the generation of carbon in the battery metals supply chain. Vulcan will supply Stellantis with at least 81,000 tons and up to 99,000 tons of lithium hydroxide during the five-year agreement period. The supply agreement is subject to the successful commencement of commercial operations at the Vulcan plant and full product qualification.

"The Vulcan Zero Carbon Lithium Project also aims to shorten transport routes for lithium chemicals to Europe. Our location in Germany, in close proximity to Stellantis' European gigafactories, is in line with this strategy," comments Francis Wedin, Vulcan Managing Director.