Vulcan Energy Resources signed a binding agreement with Stellantis to supply battery grade lithium hydroxide in Europe for use in EVs 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 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.
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.
Source: Stellantis
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