Stellantis invests in CTR for Lithium mining

Amsterdam, Netherlands- Stellantis N.V., plans to invest in the Hell's Kitchen project, the largest geothermal lithium project in the world with a total resource capacity to produce up to 300,000 metric tons of lithium carbonate equivalent annuallym, for over $100 million. Hell's Kitchen lithium production will enable the BEV eligibility of Stellantis vehicles for consumer subsidies under the U.S. Inflation Reduction Act (IRA).

The parties also increased the scope of the initial supply agreement, which now calls for CTR to provide up to 65,000 metric tons of battery-grade lithium hydroxide monohydrate (LHM) annually for a period of ten years. The original lithium supply contract that both businesses signed in June 2022 for a maximum of 25,000 metric tons of LHM per year.

CTR's Hell's Kitchen project in Imperial County, California, will recover lithium from geothermal brines using renewable energy and steam to create entirely "green" battery-grade lithium products. This eliminates the need for lithium processing using fossil fuels, open pit mines, and brine evaporation ponds.

Carlos Tavares, CEO of Stellantis said, “The foundation of our industry-leading decarbonization drive includes low-emissions production and sustainable supply as the building blocks for our electric vehicles. The latest agreement with CTR is an important step in our care for our customers and our planet as we work to provide clean, safe and affordable mobility in North America.”

Stellantis announced aims to achieve a 100% passenger vehicle BEV sales mix in Europe and a 50% passenger car and light-duty truck BEV sales mix in the United States by 2030 as part of the Dare Forward 2030 strategic plan. The company is procuring about 400 GWh of battery capacity, supported by six battery manufacturing facilities in North America and Europe, to meet these sales ambitions. By 2038, all scopes included, Stellantis is on target to become a carbon net zero corporation with a single-digit percentage compensation of leftover emissions.

Rod Colwell, CEO of CTR said, “This substantial investment in CTR by Stellantis marks an outstanding milestone for our company and further solidifies our efforts to support sustainable electric vehicle battery production. With electric vehicle adoption growing rapidly in the U.S. and throughout the world, it has never been more important to ensure battery materials are sourced and produced responsibly. Through localizing the battery supply chain, we can minimize supply chain risk and create thousands of jobs in a disadvantaged community.”

CTR is scheduled to commence battery-grade lithium hydroxide monohydrate supply for Stellantis in 2027. The company expects to create 480 construction jobs through comprehensive project labor agreements and upward of 940 direct project jobs when the resource is fully developed.