Vulcan Energy (ASX:VUL)
and auto giant Stellantis have signed a binding lithium hyroxide agreement to supply battery grade lithium hydroxide.
Vulcan aims to decarbonise the battery metals supply chain, while the Stellantis electrification strategy includes ensuring a sustainable supply of lithium, which it has identified as a critical battery raw material with regard to availability.
The agreement, starting in 2026, is to supply a minimum of 81,000 tonnes and a maximum of 99,000 tonnes of battery grade lithium hydroxide over the initial five-year period.
The battery grade lithium hydroxide will be used by the three Stellantis battery production facilities in Europe. The three plants combined will produce at least 120 gigawatt hours of cell capacity by 2030, according to Vulcan.
“The definitive offtake agreement with Stellantis aligns with our mission to decarbonise the lithium ion battery and electric vehicle supply chain,” said managing director Dr Francis Wedin.
“The Vulcan Zero Carbon Lithium™ Project 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. “
Shares in Vulcan Energy Resources (ASX:VUL)
are trading 3 per cent higher $10.56.
Image from: https://v-er.eu/