The Stellantis Group has signed a binding agreement with lithium producer Vulcan Energy to supply battery-grade lithium hydroxide in Europe for the automaker’s electrified vehicles. Vulcan will supply Stellantis with between 81,000 and 99,000 metric tons of lithium hydroxide over the five-year term of the agreement. Shipments are to begin in 2026.

The Vulcan supply agreement is a part of Stellantis’s electrification strategy to secure the availability of key raw materials for electrified vehicle batteries. Stellantis plans to invest more than €30 billion through 2025 in electrification and software development.

Vulcan says its Zero Carbon Lithium Project in the Upper Rhine Valley in Germany uses geothermal energy to produce battery-quality lithium hydroxide from brine, using no fossil fuels and minimal water. The supply agreement with Stellantis is subject to the successful start of commercial operation at the Vulcan facility and full product qualification.

“The definitive offtake agreement with Stellantis aligns with our mission to decarbonize the lithium-ion battery and electric vehicle supply chain,” said Vulcan Managing Director Dr. Francis Wedin. “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’s European gigafactories, is consistent with this strategy.”

Source: Stellantis