Carmaker Stellantis Buys Stake in German Lithium Project

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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--Carmaker Stellantis N.V. (Amsterdam, Netherlands) has invested 50 million euros (US$53 million) to become a shareholder in one of the world's first lithium operations with a net-zero carbon footprint.

The company, a merger of carmakers Fiat Chrysler and Peugeot S.A. (PSA), is set to become the second-largest shareholder in Vulcan Energy Resources (Perth, Australia) by taking an 8% interest. The money will go toward Vulcan's planned production expansion drilling in its producing Upper Rhine Valley Brine Field (URVBF) in Germany--one of the biggest lithium deposits in Europe. The company already is producing geothermal energy from the URVBF and plans to produce lithium hydroxide with zero fossil fuels and net zero carbon footprint as part of its Zero Carbon Lithium Project. It is the world's first upstream investment in a listed lithium company by a top tier automaker. Stellantis has also extended its existing binding off-take agreement with Vulcan for lithium hydroxide by five to 10 years.

"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 Carlos Tavares, the chief executive officer of Stellantis. "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."

Industrial Info is tracking 12 Vulcan projects at the Ortenau and Taro leases at the URVBF, covering proposed lithium plants and geothermal power plants, which are worth in excess of US$1.3 billion in investment. Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can click here for the reports. It is expected to produce up to 39,400 tonnes per annum of battery-grade lithium hydroxide over its 30-year lifespan.

Stellantis wants to secure a dependable source of low-carbon lithium for car batteries as part of its ambitious electric vehicle (EV) plans. The company, which has 14 car brands under its umbrella, plans to invest more than 30 billion euros (US$32 billion) through 2025 in electrification and software. It wants electrified vehicles to represent more than 70% of sales in Europe and more than 40% of those in the U.S. by 2030. In February, Industrial Info reported that the Italian government was set to approve financial support for the company's plans to build a 1 billion-euro (US$1.1 billion) EV battery plant in Termoli, southern Italy. For additional information, see February 28, 2022, article-Italian EV Battery Plant to Get Government Funding.

Vulcan Managing Director Francis Wedin said that the significant investment by Stellantis represented a strong statement by one of the world's largest automakers regarding sustainable and strategic sourcing of battery materials. "It is encouraging to see a leading automaker investing in local, low carbon lithium production for electric vehicles. 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."

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).