Stellantis signs lithium supply agreement with Vulcan Energy
Stellantis and Vulcan Energy have signed an agreement for the supply of battery grade lithium hydroxide for EV production in Europe.
The five-year deal calls for shipments to begin in 2026 and is part of the Stellantis electrification strategy 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% more efficient than the industry with respect to total Capex and R&D spend versus revenues.
Michelle Wen, Stellantis chief purchasing and supply chain officer, said: “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.
“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% 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 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.
Dr. Francis Wedin, Vulcan’s managing director, said: “The definitive offtake agreement with Stellantis aligns with our mission to decarbonise the lithium ion battery and electric vehicle supply chain.
“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.
