Stellantis Group is hoping to ramp up its battery-electric-vehicle production plans in Europe with the signing of a binding agreement for the supply of battery-grade lithium hydroxide from sustainable sources.
The deal with Vulcan Energy Resources is for five years with shipments to begin in 2026. It is part of the automaker’s strategy announced in July to guarantee the adequate availability of key raw materials for electrified vehicle battery packs.
Stellantis plans to invest more than €30 billion ($33.8 billion) through 2025 in electrification and software development, while targeting to be 30% more efficient than the industry with respect to total Capex and R&D spend versus revenues.
The group predicts more than 70% of its vehicle sales in Europe, and more than 40% of sales in the U.S., will be low-emission vehicles by 2030. The automaker says each of its 14 vehicle brands is committed to offering best-in-class fully electrified solutions.
Vulcan’s Zero Carbon Lithium Project in Germany’s Upper Rhine Valley uses geothermal energy to produce battery-quality lithium hydroxide from brine without the use of fossil fuels and minimal water usage, reducing the generation of carbon in the battery metals supply chain.
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 term of the agreement.
Michelle Wen, Stellantis’ chief purchasing and supply chain officer, says: “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.”