Stellantis signs lithium supply agreement with Vulcan Energy for decarbonised supply of key raw materials for electric vehicle (EV) battery packs
This deal is a key element to power Stellantis’ aggressive electrification strategy of its 14 car brands
The Vulcan supply agreement is a part of the Stellantis electrification strategy. This was detailed during its EV Day presentation on 8 July 2021, to guarantee the adequate availability of key raw materials for electrified vehicle battery packs.
Stellantis plans to invest more than £25 billion (€30 billion/$34 billion) through 2025 in electrification and software development. It will also be target continuing to be 30 percent 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 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. They do this 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 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 decarbonization 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.