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Stellantis has signed a binding agreement with the Australian group Vulcan Energy Resources (+ 276% on the stock exchange since the beginning of the year) under which the latter will supply lithium hydroxide for batteries in Europe, to be used in Stellantis electrified vehicles. The strategy of car manufacturers continues to secure the supplies of raw materials necessary to build their own batteries in future gigafactories without fully relying on outsourcing for such vital parts of electric cars. Tesla said in June that it will spend $ 1 billion to procure supplies in Australia.
Supplies from 2026
The five-year agreement calls for shipments to begin in 2026. The supply agreement is part of the group’s electrification strategy to ensure adequate availability of essential raw materials for electrified vehicle batteries. Vulcan will supply Stellantis with a minimum of 81,000 tons and a maximum of 99,000 tons of lithium hydroxide over the five-year term of the agreement.
Green production in Germany
As specified, Vulcan has started the Zero Carbon Lithium project in Germany, in the upper Rhine valley, which uses geothermal energy to produce lithium hydroxide for batteries obtained from brine, without the use of fossil fuels and with minimum consumption of energy. water, thereby reducing carbon production in the battery metal supply chain. The supply agreement is subject to the successful launch of the commercial activity of the Vulcan plant and the complete qualification of the product.
The Stellantis strategy
“Stellantis is pursuing its electrification strategy energetically and quickly. This agreement is further proof that we have the competitive spirit to deliver on our commitments, ”said Michelle Wen, Stellantis Chief Purchasing and Supply Chain Officer.
“The freedom to move in safe, clean and affordable means is a strong expectation of our societies and our commitment is to provide answers that match these demands,” added Wen.