Lithium produced at Hell's Kitchen will support Stellantis vehicles' BEV eligibility for consumer incentives under the US Inflation Reduction Act (IRA).
Additionally, the companies expanded the initial supply agreement, which now calls for CTR to supply up to 65,000t of battery-grade lithium hydroxide monohydrate (LHM) each year over a 10-year contract term. This new agreement incorporates the original lithium supply agreement signed by both companies in June 2022 for up to 25,000t of LHM per year.
CTR's Hell's Kitchen project in California's Imperial County will recover lithium from geothermal brines using renewable energy and steam to produce truly "green" battery-grade lithium products in a fully integrated process. This eliminates the need for evaporation brine ponds, open pit mines and fossil-fuelled lithium processing.
Industry-leading decarbonisation
An important step in our care for our customers and our planet
"The foundation of our industry-leading decarbonisation drive includes low-emissions production and sustainable supply as the building blocks for our electric vehicles," Stellantis CEO Carlos Tavares said. "The latest agreement with CTR is an important step in our care for our customers and our planet as we work to provide clean, safe and affordable mobility in North America."
As part of the Dare Forward 2030 strategic plan, Stellantis announced plans of reaching a 100% passenger car BEV sales mix in Europe and 50% passenger car and light-duty truck BEV sales mix in the US by 2030. To achieve these sales targets, the company is securing approximately 400GWh of battery capacity, supported by six battery manufacturing plants in North America and Europe. Stellantis is on track to become a carbon net zero corporation by 2038, all scopes included, with single-digit percentage compensation of remaining emissions.
Substantial investment
"This substantial investment in CTR by Stellantis marks an outstanding milestone for our company and further solidifies our efforts to support sustainable electric vehicle battery production," CTR CEO Rod Colwell said. "With electric vehicle adoption growing rapidly in the US and throughout the world, it has never been more important to ensure battery materials are sourced and produced responsibly. Through localising the battery supply chain, we can minimise supply chain risk and create thousands of jobs in a disadvantaged community. We applaud the leadership of Stellantis and look forward to working together to set new industry benchmarks for reliability, efficiency, and sustainability."
CTR is scheduled to commence battery-grade lithium hydroxide monohydrate supply for Stellantis in 2027.
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