Stellantis has made an equity investment of €50 million (£43m) in Vulcan Energy Resources, a producer of sustainable lithium for electric vehicle (EV) batteries.
The investment will support the company’s planned production expansion drilling in its Upper Rhine Valley Brine Field, where the company is already producing geothermal energy.
It now plans to produce lithium hydroxide with zero fossil fuels and net zero carbon footprint as part of the Zero Carbon Lithium Project.
Dr Francis Wedin, Managing Director of Vulcan said: “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.
“We are fully aligned with Stellantis’ decarbonisation 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.”
Stellantis has set a goal of achieving 100% passenger car battery electric vehicle (BEV) sales in Europe and 50% passenger car and light-duty truck BEV sales mix in the US by 2030.
Vulcan and Stellantis have also extended their binding lithium hydroxide offtake agreement by five years to 2035.
Carlos Tavares, Stellantis CEO added: “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.
“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.”