Stellantis, has announced a $155 million investment in a project located in Argentina, which is expected to make a significant contribution to the company’s goal of becoming carbon net-zero by 2038. The investment involves acquiring a 14.2% equity stake in McEwen Copper, a subsidiary of Canadian mining firm McEwen Mining that owns the Los Azules project in Argentina and the Elder Creek project in Nevada, USA.
With this stake, Stellantis will become McEwen Copper’s second-largest shareholder, along with Rio Tinto through its copper leaching technology venture, Nuton. The Los Azules project is expected to produce 100,000 tons per year of cathode copper at 99.9% purity starting in 2027, and the resources can secure the operation for at least 33 years.
Carlos Tavares, Stellantis CEO, stated that the company intends to lead the industry with its commitment to achieving carbon net zero by 2038. “We are taking important steps in Argentina and Brazil, with the aim of decarbonizing mobility and ensuring strategic supplies of raw materials necessary for the success of the company’s global electrification plans,” he said.
Copper is a strategic raw material for the future of electric mobility, and it is estimated that global demand for the conductive metal will triple in the coming years. Stellantis’ investment in one of the top-10 international projects in the development of this commodity will allow it to supply some of the projected copper demand starting in 2027.
The investment is also in line with Stellantis’ Dare Forward 2030 long-term strategic plan, which aims to achieve a 100% passenger car battery electric vehicle (“BEV”) sales mix in Europe and a 50% passenger car and light-duty truck BEV sales mix in the United States by 2030. In Brazil, the company is targeting a 20% low-emission vehicle (“LEV”) sales mix by the end of the decade. The plan is anchored in an ambitious decarbonization strategy consistent with science-based recommendations. By 2030, the company plans to reduce its carbon emissions footprint by half versus 2021 metrics, putting it on track to achieve carbon net zero by 2038.
McEwen Copper Chief Executive Rob McEwen expressed his enthusiasm for the partnership with Stellantis. “Together, we share a collective vision to build a mine for the future based on regenerative principles and innovative technologies that can achieve net-zero carbon emissions by 2038! We are committed to delivering green copper to Argentina and the world, a product that will contribute to the electrification of transportation and the protection of our atmosphere.”