Let’s not forget lithium ain’t going anywhere but up!
Fyi, Did you see where,
Vulcan Energy has signed another lithium hydroxide offtake agreement (its second in a week) — this time with multinational automotive manufacturer, Stellantis.
The company said that starting from 2026, Vulcan will supply a minimum of 81,000 tonnes and a maximum of 99,000 tonnes of battery grade lithium hydroxide over the duration of the initial five year agreement.
The battery grade lithium hydroxide will be used by the three Stellantis battery production facilities in Europe – in Termoli, Italy, and the Automotive Cells Company (ACC) joint venture plants in Kaiserslautern, Germany, and Douvrin, France.
These three plants combined will produce at least 120 gigawatt hours of cell capacity by 2030. More than 70pc of Stellantis European sales will be LEVs
Managing director Dr Francis Wedin said the definitive offtake agreement with Stellantis aligns with Vulcan’s mission to decarbonise the lithium-ion battery and electric vehicle supply chain.
With its zero-carbon lithium project, VUL “also intends to reduce the transport distance of lithium chemicals into Europe, and our location in Germany, proximal to Stellantis’ European gigafactories, is consistent with this strategy”, Wedin said.
The Stellantis electrification strategy includes ensuring a sustainable supply of lithium, which it has identified as a critical battery raw material regarding availability.
By 2030, more than 70% of Stellantis’ European sales and more than 40% of its U.S. sales will be low emission vehicles (LEVs). Plans in place for five battery cell manufacturing plants in EU
Stellantis’ plans call for a total of five battery cell manufacturing plants in Europe, including Germany, and the United States, with a total capacity of 260 gigawatt hours (GWh).
Stellantis chief purchasing and supply chain officer Michelle Wen said: “This agreement is further proof that we have the competitive spirit to deliver on our commitments.”
“Safe, clean and affordable freedom of mobility represents a strong expectation of our societies, and we are committed to deliver on that matter.”
*Permitting –ongoing process: building permits, drilling permits, operational permits etc
*The project may be affected by delays in receiving the necessary approvals from all relevant authorities and parties.
*As with virtually any sort of new development especially for infrastructure projects, we expect some opposition -as has and has been seen with wind and solar in Germany.
AVZ Price at posting:
67.0¢ Sentiment: Buy Disclosure: Held
