Vulcan Energy signs lithium supply agreement with Stellantis, battery grade lithium hydroxide.
Vulcan Energy Resources Ltd. (Vulcan, the Company, ASX: VUL) and Stellantis N.V. (NYSE / MTA / Euronext Paris: STLA) have signed a binding lithium hydroxide offtake agreement (“Agreement”) to supply, starting 2026, a minimum of 81,000 tonnes and a maximum of 99,000 tonnes of
battery grade lithium hydroxide over the duration of the initial five-year agreement.
Consistent with Vulcan’s strategy to decarbonise the battery metals supply chain, the Stellantis electrification strategy includes ensuring a sustainable supply of lithium, which it has identified as a critical battery raw material with regard to availability.
By 2030, more than 70% of Stellantis’ European sales and more than 40% of its U.S. sales will be low emission vehicles (LEVs). Stellantis’ plans call for a total of five battery cell manufacturing plants in Europe, including Germany, and the United States, with a total capacity of 260 gigawatt hours(GWh).
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The battery grade lithium hydroxide will be used by the three Stellantis battery production facilities in Europe – in Termoli, Italy, and the Automotive Cells Company (ACC) joint venture plants in Kaiserslautern, Germany, and Douvrin, France.
The three plants combined will produce at least 120 gigawatt hours of cell capacity by 2030 Conditions precedent include successful start of commercial operation and full product qualification. Pricing will be based on market prices on a take-or-pay basis.
Dr Francis Wedin, Managing Director commented:
The definitive offtake agreement with Stellantis aligns with our mission to decarbonise the lithium ion battery and electric vehicle supply chain.
“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 decarbonisation ambitions.”
Michelle Wen, Stellantis Chief Purchasing and Supply Chain Officer said:
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.”
Vulcan Energy signs lithium supply agreement with Stellantis, November 29, 2021
