Stellantis has secured material supply for its battery packs.
Stellantis Signs Lithium Supply Agreement with Vulcan Energy
AMSTERDAM, November 29, 2021 – Stellantis N.V.
- Agreement supports decarbonized supply of key raw material for electrified vehicle battery packs
- Key element to power Stellantis’ aggressive electrification strategy
(NYSE / MTA / Euronext Paris: STLA) (“Stellantis”) and Vulcan Energy Resources Ltd.
(ASX: VUL) announced today the signing of a binding agreement (“Agreement”) for Vulcan to 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.
The Vulcan supply agreement is a part of the Stellantis electrification strategy, detailed during the EV Day
presentation in July 2021, to guarantee the adequate availability of key raw materials for electrified vehicle battery packs. Stellantis plans to invest more than €30 billion through 2025 in electrification and software development, while targeting to continue to be 30 percent more efficient than the industry with respect to total Capex and R&D spend versus revenues.
“Stellantis is moving forward on its electrification strategy with speed and power. This agreement is further proof that we have the competitive spirit to deliver on our commitments,” said Michelle Wen, Stellantis Chief Purchasing and Supply Chain Officer. “Safe, clean and affordable freedom of mobility represents a strong expectation of our societies and we are committed to deliver on that matter.”
Stellantis targets that more than 70 percent of its vehicle sales in Europe and more than 40 percent of vehicle sales in the United States will be low emission vehicles (LEV) by 2030. Each of the company’s 14 iconic vehicle brands is committed to offering best-in-class fully electrified solutions.
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.
“The definitive offtake agreement with Stellantis aligns with our mission to decarbonise the lithium ion battery and electric vehicle supply chain,” said Dr. Francis Wedin, Vulcan Managing Director. “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 gigafactories, 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 decarbonisation ambitions.”
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.
The supply agreement is subject to the successful start of commercial operation at the Vulcan facility and full product qualification.