Stellantis announces equity investment in Vulcan Energy
Stellantis NV has now become the second largest stakeholder in Vulcan Energy Resources, forging a sustainable value chain for European vehicle battery production.
Netherlands-based automotive manufacturing company Stellantis NV (Stellantis) has announced an equity investment of EUR 50 million in Vulcan Energy Resources (Vulcan), making Stellantis the second largest stakeholder in the company pioneering the Zero Carbon Lithium Project. Stellantis also announced the extension of a binding offtake agreement for the supply of battery-grade lithium from the previously agreed-on 5 years to 10 years.
The equity investment will go towards Vulcan’s planned production expansion drilling in its producing Upper Rhine Valley Brine Field (URVBF). Vulcan is already producing geothermal energy from its URVBF and plans to produce lithium hydroxide with zero fossil fuels and net zero carbon footprint as part of the Zero Carbon Lithium Project.
“Making this highly strategic investment in a leading lithium company will help us create a resilient and sustainable value chain for our European electric vehicle battery production,” said Stellantis CEO Carlos Tavares. “We continue our quest of forming strong relationships with partners who share our values as we collectively fight against global warming and provide clean, safe and affordable mobility to our customers.”
“Stellantis’ significant investment in Vulcan and the Zero Carbon Lithium™ Project represents a strong statement by one of the world’s largest automakers regarding sustainable and strategic sourcing of battery materials,” said Vulcan Managing Director Dr Francis Wedin. “As our largest offtaker, we look forward to deepening our relationship with Stellantis as a substantial shareholder in Vulcan and our Zero Carbon Lithium™ business.”
Earlier this month, we reported on Vulcan securing two new exploration licenses in the Upper Rhine Valley in Germany. Vulcan also benefits from the positive vote for geothermal energy production in the City of Landau, one of the key areas in Vulcan’s geothermal production license at Insheim.
Also earlier this month, Stellantis entered into a binding offtake agreement for battery-grade lithium from Controlled Thermal Resources Ltd., a company seeking to extract geothermal lithium in the Hell’s Kitchen Project in California’s Imperial County.
Source: Stellantis NV