Stellantis Invests in Geothermal Energy Project with Vulcan Energy Resources

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Stellantis Invests in Geothermal Energy Project with Vulcan Energy Resources

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Automaker Stellantis [STLA:US] is set to invest in a geothermal energy project in Germany with lithium developer Vulcan Energy Resources [VUL:AU] to help power a manufacturing facility for electric vehicles (EVs), as reported by Reuters on January 16. The phased project is aimed at providing renewable heat to Stellantis’ Rüsselsheim manufacturing facility. Vulcan will initially carry out a pre-feasibility study for the development of geothermal renewable energy projects in Rüsselsheim. The parties will seek public funding opportunities together to advance the project. Stellantis, which holds an 8% stake in Vulcan, will aim to source funding for 50% of the project development after the first phase of the project.

Prior to the partnership in geothermal energy, the companies have signed an agreement in 2021 for Vulcan to supply battery-grade lithium hydroxide in Europe for use in electrified vehicles to the Stellantis Group. The five-year agreement calls for shipments to begin in 2026. The Vulcan supply agreement is a part of the Stellantis electrification strategy to guarantee the adequate availability of key raw materials for electrified vehicle battery packs. The company plans to invest more than GBP30bn (USD36.6bn) through 2025 in electrification and software development while targeting to be 30% more efficient than the industry with respect to total Capex and R&D spend versus revenues.

Sources:

https://www.reuters.com/business/autos-transportation/vulcan-energy-stellantis-develop-renewable-energy-assets-germany-2023-01-16/

https://www.stellantis.com/en/news/press-releases/2021/november/stellantis-signs-lithium-supply-agreement-with-vulcan-energy

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