Vulcan and Stellantis in joint project to develop geothermal renewable energy to supply Mulhouse plant in France.
Stellantis N.V. and Vulcan Energy Resources Limited (“Vulcan”, “the Company”) have signed a binding term sheet for the first phase of a multiphase project, to develop new geothermal projects aimed at decarbonising the energy mix of Stellantis’ Mulhouse industrial site in France, which is home to the DS 7, Peugeot 308 and 308 SW, 508 and 508 SW and the new 408 models.
Based upon current assumptions, the planned renewable energy project could provide a significant portion of the industrial site’s annual energy needs starting in 2026.
The first phase of the project, located at the southernmost extent of Vulcan’s focus area in the Upper Rhine Valley, will include a Pre-Feasibility Study (PFS) for the construction of geothermal renewable energy assets for Stellantis’ facility, carried out by Vulcan, which will also assess potential for lithium production.
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If successful, the next phase will focus on more advanced studies and development. Stellantis will aim to source funding for 50% of the project development, and the parties will seek public funding for the project. Subject to a successful PFS, Stellantis and Vulcan aim to develop the project jointly on a 50:50 basis.
Stellantis and Vulcan will aim to jointly produce clean, renewable energy for internal consumption at Stellantis’ manufacturing site.
In November 2022, Vulcan announced that it had started a number of initiatives to expand its geothermal renewable energy and Zero Carbon Lithium™ business into France and specifically Alsace, which accounts for roughly one third of the Upper Rhine Graben.
Vulcan has applied over the Mulhouse area for an exclusive lithium and geothermal license to secure another 480 km² of development area within the Upper Rhine Graben Valley Brine Field. According to the term sheet, Vulcan’s team will perform a lithium mineral resource assessment according to the JORC Code.
Vulcan’s Zero Carbon LithiumTM project is aligned with the creation of the “French Mineral Resources Observatory” that aims to analyse the French critical raw materials resources and provide recommendations for public investment that will be supported by the recently announced new 2 billion euro “French Critical Raw Materials Fund”.
Arnaud Deboeuf, Stellantis Chief said:
We are proud to announce another step in our partnership with Vulcan, which demonstrates our commitment to increase the use of decarbonized energy solutions across our facilities.
Manufacturing Officer. “Geothermal is one of many solutions we explore to achieve our sustainability goals in alignment with our Dare Forward 2030 strategic plan.” Stellantis embraces a holistic approach to decarbonisation and is on track to become a carbon net zero corporation, all scopes included, by 2038, with single-digit percentage compensation of remaining emissions.
The agreement with Vulcan Energy marks Stellantis’ second potential use of renewable geothermal energy to decarbonise and localize its energy supply at an industrial site.
Dr. Francis Wedin, Vulcan Managing Director and CEO, said:
Vulcan’s core mission is decarbonisation, through renewable energy and carbon neutral lithium supply.
“Vulcan is here to support Stellantis, our largest lithium customer and one of our major shareholders, to decarbonise its operations in Europe. While we remain focused on execution of our integrated Phase One commercial lithium and renewable energy project, in the centre of the Upper Rhine Valley Brine Field, this project is a complementary opportunity to expand our future development pipeline into the French region of the Upper Rhine Valley, supported by industrial partners like Stellantis.”
Franck Leroy, President of the Grand Est Region, said:
Stellantis is a major industrial player in the automotive sector in the Grand Est.
“This is why the Region wanted to support the group in its transition to electric. With this strategic partnership, transformation to create the industry of the future and the fight against global warming are taking shape in our Region thanks to a rational exploitation of geothermal energy,”
The agreement with Stellantis also increases Vulcan’s decarbonising impact on the European electric vehicle industry, complementing the carbon avoidance from its Zero Carbon Lithium™ Project, and creating shareholder value.
ASX Guidance Note Requirements
In addition to the material terms of the Agreement set out above, the Company notes that:
- The parties intend to complete the Pre-Feasibility Study (“PFS”) for the development of geothermal
renewable energy projects in Mulhouse by October 2023; - there are no conditions precedent to this first phase; and
- following completion of the PFS the parties will negotiate the terms of any subsequent phases or
choose to terminate the Agreement.
About Stellantis
Stellantis N.V. (NYSE: STLA / Euronext Milan: STLAM / Euronext Paris: STLAP) is one of the world’s leading automakers and a mobility provider. Its storied and iconic brands embody the passion of their visionary founders and today’s customers in their innovative products and services, including Abarth, Alfa Romeo, Chrysler, Citroën, Dodge, DS Automobiles, Fiat, Jeep®, Lancia, Maserati, Opel, Peugeot, Ram, Vauxhall, Free2move and Leasys.
Powered by our diversity, we lead the way the world moves – aspiring to become the greatest sustainable mobility tech company, not the biggest, while creating added value for all stakeholders as well as the communities in which it operates. For more information, visit www.stellantis.com.
About Vulcan
Founded in 2018, Vulcan’s unique Zero Carbon Lithium™ Project aims to decarbonise lithium production, through developing the world’s first net carbon neutral lithium business, with the co- production of renewable geothermal energy on a mass scale. By adapting existing technologies to efficiently extract lithium from geothermal brine, Vulcan aims to deliver a local source of sustainable lithium for Europe, built around a net zero carbon strategy with strict exclusion of fossil fuels.
Already an operational renewable energy producer, Vulcan will also provide renewable electricity and heat to local communities. Vulcan’s combined geothermal energy and lithium resource is the largest in Europe18F 1 , with license areas focused on the Upper Rhine Valley, Germany.
Strategically placed in the heart of the European electric vehicle market to decarbonise the supply chain, Vulcan is rapidly advancing the Zero Carbon Lithium™ Project to target timely market entry, with the ability to expand to meet the unprecedented demand that is building in the European markets.
Guided by our Values of Integrity, Leadership, Future-focused and Sustainability, and united by a passion for environmentalism and leveraging scientific solutions, Vulcan has a unique, world- eading scientific and commercial team in the fields of lithium chemicals and geothermal renewable energy.
Vulcan is committed to partnering with organisations that share its decarbonisation ambitions and has binding lithium offtake agreements with some of the largest cathode, battery, and automakers in the world.
As a motivated disruptor, Vulcan aims to leverage its multidisciplinary expert team, leading geothermal technology and position in the European EV supply chain to be a global leader in producing zero fossil fuel, net carbon neutral lithium while being nature positive. Vulcan aims to be the largest, most preferred, strategic supplier of lithium chemicals and renewable power and heating from Europe, for Europe; to empower a net zero carbon future.
Highlights:
● Vulcan and Stellantis sign fourth agreement together, after:
o a binding lithium hydroxide supply agreement signed in 2021;
o an equity investment and binding lithium hydroxide supply agreement in 2022;
o a joint renewable energy project development term sheet for the Stellantis Russelsheim plant
in Germany signed in 2023.
● Agreement represents first joint project in France for the potential use of geothermal renewable energy to decarbonise and localise the energy supply for Stellantis’ European operations. Stellantis’
decarbonisation strategy includes achieving carbon net zero by 2038 with a 50% reduction by end of the decade.
● Vulcan is developing integrated lithium chemicals and geothermal renewable energy production, from its Zero Carbon Lithium™ Project in the Upper Rhine Valley in Germany and France. Its sorption-type Direct Lithium Extraction (DLE) optimisation plant is nearing completion in Germany, and Phase One commercial operations are entering the execution phase, following 2 years of successful pilot plant operations.
● Agreement with Stellantis increases Vulcan’s decarbonising impact on the European electric vehicle industry, complementing the carbon avoidance impact from its Zero Carbon Lithium™ Project.
Vulcan and Stellantis in Joint Project to Develop Geothermal Renewable Energy to Supply Mulhouse Plant in France, May 31, 2023
