Stellantis becomes second largest shareholder in lithium maker Vulcan Energy

According to foreign media reports, Stellantis has made a $52 million equity investment in Vulcan Energy Resources.Vulcan Energy Resources is a start-up that plans to mine the lithium material crucial toelectric vehiclebatteries with zero greenhouse gas emissions .

Image credit: Vulcan

Stellantis said on June 24 that the investment gave it an 8 percent stake in Vulcan, making it the company’s second-largest shareholder, and that Vulcan would use the investment to expand its mining operations in Germany’s Upper Rhine Valley.The companies also extended the five-year agreement announced last November to 10 years.

"This highly strategic investment in a leading lithium battery company will help us create a resilient and sustainable value chain for EV battery production in Europe," said Carlos Tavares, CEO of Stellantis, with whom Stellantis has partnered Partners Mercedes-Benz and Total/Saft plan to open at least three battery factories in Europe in the next few years in France, Germany and Italy.

Stellantis said it would need 150 GWh of battery capacityto meet its goal of selling only electric vehicles in Europe by 2030.As part of an initial five-year agreement, Vulcan said it will supply Stellantis with 81,000 to 99,000 tonnes of battery-grade lithium hydroxide in Europe starting in 2026.

Vulcan is one of many companies testing direct lithium extraction (DLE) methods, which use less land and groundwater and are more sustainable than the most common open pit mines and brine evaporation pond methods today.In addition to Stellantis, Vulcan has also signed supply agreements with Groupe Renault, battery manufacturer LG Chem and Belgian recycling group Umicore.