Stellantis and Vulcan Energy Resources announced the €50 million (A$76 million) capital investment in Vulcan and an extension of the original binding off-take agreement to 10 years.
The capital investment will go into Vulcan’s planned production expansion wells in the producing Upper Rhine Valley (URVBF) brine field. Vulcan already produces geothermal energy from its URVBF and plans to produce lithium hydroxide without fossil fuels and a net zero carbon footprint as part of the Zero Carbon Lithium Project.
“By making this highly strategic investment in a leading lithium company, we can create a resilient and sustainable value chain for our European battery production for electric vehicles,” said Carlos Tavares, CEO of Stellantis.
“Stellaantis’ significant investment in Vulcan and the project represents a strong statement from one of the world’s largest automakers regarding sustainable and strategic sourcing of battery materials,” said Francis Wedin, Vulcan CEO. “It is encouraging to see a leading automaker investing in local, low-carbon lithium production for electric vehicles. As our largest customer, we look forward to deepening our relationship with Stellantis as a substantial shareholder.”