Stellantis now 8% shareholder of Vulcan Energy
Stellantis has indicated that it now holds 8% of the capital of Vulcan Energy, thus becoming the group’s second largest shareholder, after the founder and general manager of Vulcan, Francis Wedin.
The automobile group is already the most important customer of Vulcan Energy.
In August 2021, Renault meanwhile announced a strategic partnership with the company to secure between 6,000 and 17,000 tonnes per year of lithium.
Extended agreement to guarantee the production of electrified vehicles of Stellantis
The initial agreement, signed in 2021, provided for the delivery of 81,000 to 99,000 tonnes of lithium hydroxide between 2026 and 2031, to equip several hundred thousand cars.
According to the automotive group, this new investment should make it possible “to increase the production of low-emission lithium hydroxide necessary for Stellantis’ electrified vehicles in Europe. While aiming to overcome China, which controls a significant part of the market at present.
The Vulcan Energy project supposed to be less polluting
Vulcan Energy’s mine and refinery project, located in Germany’s Upper Rhine Valley, is one of Europe’s leading lithium mining projects, managed to be less polluting than current production in Australia and South America.
Vulcan plans to produce lithium hydroxide without using fossil fuels and with a “neutral” carbon footprint as part of its Zero Carbon Lithium project.
Our opinion, by leblogauto.com
As a reminder, Stellantis intends to make 100% of its sales of passenger cars electric in Europe by 2030, and 50% in the United States. And for that, it needs specific batteries…. And lithium to produce them. Hence the need to build its independence vis-à-vis China.
to summarize
Stellantis is growing in lithium, a strategic raw material for the manufacture of batteries for electric vehicles. The automotive group resulting from the merger between PSA and FCA has indeed become the second shareholder of Vulcan Energy. At the same time extending the lithium supply agreement with its future German mine until 2036.
