Stellantis and Controlled Thermal Resources (CTR) announced that CTR had signed a binding agreement to supply battery-grade lithium hydroxide in Stellantis' North American electric vehicle manufacturing operations.
CTR's Hell's Kitchen Project in Imperial County, California, will recover lithium from geothermal brines. It uses renewable energy and steam to produce battery-grade lithium products in an integrated, closed-loop process, eliminating the need for evaporative brine ponds, open-pit mines, and fossil fuel processing.
"In the fight against global warming, strengthening our battery electric vehicle supply chain to support our ambitious electrification goals is critical," said Stellantis CEO Carlos Tavares. "By ensuring we have a robust, competitive, and low-carbon lithium supply through various partnerships worldwide, we can meet our ambitious electric vehicle production plans responsibly."
"This binding offtake agreement with Stellantis sets a new benchmark for the automotive industry in the United States," said Rod Colwell, CEO of CTR. "Securing clean lithium made using energy from renewable resources helps further decarbonize the battery supply chain. This, in turn, leads to even cleaner cars that have even less impact on the environment. We look forward to a healthy and prosperous collaboration with Stellantis."
CTR will deliver to Stellantis up to 25,000 tonnes per year of lithium hydroxide over the 10-year contract period. In addition, Stellantis announced a similar supply deal to support its European vehicle production in late 2021.
As part of the Dare Forward 2030 strategic program, Stellantis announced its objectives to sell five million battery electric vehicles worldwide by 2030. This would represent 100% of the car BEV sales mix in Europe and 50% of the car and light truck sales in North America. Stellantis also announced the planned increase in battery capacity by 140 GWh to around 400 GWh, which is to be ensured by five plants in Europe and North America and through additional supply contracts.
CTR will produce battery-grade lithium hydroxide and lithium carbonate and geothermal energy in Imperial County, California, with a resource production capacity of over 300,000 tons per year.