Stellantis has made a $52 million investment in the company Vulcan Energy, specialized in lithium extraction with zero greenhouse gas emissions. This is not the first time that a car manufacturer has carried out a movement of this nature, as brands such as Tesla have already done the same and have invested large amounts of money to extract raw materials such as lithium, thus ensuring their supply for consumers. next years.
The lack of supplies and the increase in the cost of raw materials are causing many automobile brands to allocate a significant amount of money to guarantee their availability. Now the turn has come for Stellantis, who has invested 52 million dollars in Vulcan Energy, a new start-up company of Australian and German origin that expects to start lithium extraction in the Upper Rhine Valley in Germany. Stellantis’ investment involves the acquisition of 8 percent of the total of the aforementioned company, for which the automobile group thus becomes its second largest shareholder.
Lithium is a crucial element when it comes to manufacturing batteries for electric vehicles, so its demand will grow significantly in the coming years due to the expansion of the electric car fleet worldwide. The relationship between Stellantis and Vulcan Energy is not new, since last December they sealed a collaboration agreement for a period of five years. However, the purchase of shares by Stellantis involves acquiring a percentage of Vulcan Energy, as well as extend the previous agreement for an additional 10 years.
Carlos Tavares himself, CEO of Stellantis, has spoken about this important move because “making this strategic investment in a leading lithium extraction company will help us create a strong and sustainable value chain for our European production of vehicle batteries electricity”, said the manager during a recent exhibition in which such investment in Vulcan Energy was confirmed.
From Stellantis they confirmed that they will need to reach a production of 150 GWh in batteries by the year 2030 if they want to meet their goal of commercializing only electric vehicles by the end of this decade or the beginning of the next. The same automobile group expects to open at least three new battery factories in Europe in the coming years, specifically in France, Germany and Italy. Carlos Tavares did not rule out locating one in Spain as the electric vehicle market demands even more components of this type.
Vulcan Energy claimed to Stellantis, as part of their initial five-year agreement, that will supply between 81,000 and 99,000 tons of lithium hydroxide for batteries manufactured in Europe from the year 2026which would mean a high percentage of the total specified by Stellantis for the production of electric vehicles forecast for that year.
The mentioned mining company, Vulcan Energy handles lithium extraction by using less land and groundwater, which makes his method more sustainable than those currently used in open pit mines or brine evaporation ponds. In addition to Stellantis, they have also signed material delivery agreements with Grupo Renault, LG Chem and Umicore.
