Stellantis signs lithium supply agreement with Vulcan Energy
Stellantis N.V. and Vulcan Energy Resources Ltd. announced the signing of a binding agreement for Vulcan to supply battery grade lithium hydroxide in Europe for use in electrified vehicles to the Stellantis Group.
The five-year agreement calls for shipments to begin in 2026. The Vulcan supply agreement is a part of the Stellantis electrification strategy to guarantee the availability of key raw materials for electrified vehicle battery packs.
“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,” said Michelle Wen, Chief Purchasing and Supply Chain Officer, Stellantis. “Safe, clean and affordable freedom of mobility represents a strong expectation of our societies and we are committed to deliver on that matter.”
Stellantis targets that over 70 per cent of its vehicle sales in Europe and over 40 per cent of vehicle sales in the U.S. will be low emission vehicles (LEV) by 2030.
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 five-year term of the agreement.
“The definitive offtake agreement with Stellantis aligns with our mission to decarbonise the lithium ion battery and electric vehicle supply chain,” said Francis Wedin, Managing Director, Vulcan. “The Vulcan Zero Carbon Lithium™ Project also intends to reduce the transport distance of lithium chemicals into Europe, and our location in Germany, proximal to Stellantis’ European gigafactories, is consistent with this strategy. We look forward to a long and productive relationship between Vulcan and Stellantis, as we work to achieve our shared sustainability and decarbonization ambitions.”