Stellantis and Vulcan Energy Resources Ltd. announced on Friday, that Stellantis’ €50 million ($52.7 million USD) equity investment in Vulcan and an extension of the original binding offtake agreement 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 Carlos Tavares, Stellantis CEO. “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. “We are fully aligned with Stellantis’ decarbonization and electrification goals, which represent some of the most ambitious in the industry. 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.”
As part of the Dare Forward 2030 strategic plan, Stellantis announced plans of reaching 100% of passenger car battery electric vehicle (BEV) sales mix in Europe and 50% of passenger car and light-duty truck BEV sales mix in the United States by 2030. Stellantis aims to be the industry champion in climate change mitigation, becoming carbon net-zero by 2038, with a 50% reduction by 2030.