Auto giant Stellantis has announced a $A76 million boost to its investment in Australian energy metals company Vulcan Energy, becoming the aspiring net zero lithium producer’s second largest shareholder and locking in a 10-year supply contract.
Stellantis – which was formed in 2021 through the merger of Italian-American conglomerate Fiat Chrysler Automobiles and the French PSA Group, and which heads up brands Peugeot, Maserati, Chrysler and Jeep – had originally signed a supply agreement with Vulcan for battery-grade lithium hydroxide back in November 2021.
Stellantis will now become the second-largest shareholder in Vulcan through a $76 million equity investment which will be used to fund Vulcan’s planned production expansion drilling in its producing Upper Rhine Valley Brine Field in Germany.
“Making this highly strategic investment in a leading lithium company will help us create a resilient and sustainable value chain for our European electric vehicle battery production,” said Carlos Tavares, Stellantis CEO.
“We continue our quest of forming strong relationships with partners who share our values as we collectively fight against global warming and provide clean, safe and affordable mobility to our customers.”
The Perth headquartered Vulcan Eneris aims to become the world’s first lithium producer with net zero greenhouse gas emissions.
Its Upper Rhine Valley Brine Field is already producing geothermal energy and it will soon begin to produce lithium hydroxide with zero fossil fuels and net zero carbon footprint as part of the company’s larger Zero Carbon Lithium Project.
Vulcan says the Stellantis investment is the world’s first upstream investment by a top tier automaker in a listed lithium company.
“We are fully aligned with Stellantis’ decarbonisation and electrification goals, which represent some of the most ambitious in the industry,” said Dr Francis Wedin, Vulcan’s managing director.
“It is encouraging to see a leading automaker investing in local, low carbon lithium production for electric vehicles. As our largest offtaker, we look forward to deepening our relationship with Stellantis as a substantial shareholder in Vulcan and our Zero Carbon Lithium business.”
Joshua S. Hill is a Melbourne-based journalist who has been writing about climate change, clean technology, and electric vehicles for over 15 years. He has been reporting on electric vehicles and clean technologies for Renew Economy and The Driven since 2012. His preferred mode of transport is his feet.