Connect with us

Energy & Critical Metals

Stellantis Acquires Stake In Decarbonized Lithium Producer Vulcan For €50 Million

Weeks after establishing its hydrogen fuel cell division, Stellantis NV (NYSE: STLA) has turned its investing attention into low-carbon lithium
The post…

Published

on

This article was originally published by The Deep Dive

Weeks after establishing its hydrogen fuel cell division, Stellantis NV (NYSE: STLA) has turned its investing attention into low-carbon lithium production. The automaker announced today its €50 million equity investment into lithium producer Vulcan.

The investment effectively gives the Netherlands-based automaker an approximate 8% equity in Vulcan, making it the second-largest shareholder of the Australian firm.

“Making this highly strategic investment in a leading lithium company will help us create a resilient and sustainable value chain for our European electric vehicle battery production,” said CEO Carlos Tavares.

The investment is said to be intended for Vulcan’s planned production expansion drilling in its producing Upper Rhine Valley Brine Field. From producing geothermal energy out of the property, the firm now wants to produce lithium hydroxide with zero fossil fuels.

This is part of Vulcan’s flagship Zero Carbon Lithium Project, aiming to “produce a battery-quality lithium hydroxide chemical product from its combined geothermal energy and lithium resource.”

Stellantis has also extended the five-year lithium supply agreement with Vulcan to 10 years.

The luxury brand carmaker has previously announced its goal to achieve carbon net zero by 2038, with a 50% reduction by 2030.

The announcement of the Vulcan investment follows after news reports circulated that Stellantis’s German supplier Continental was the reason for the carmaker to halt production at its two French auto plants.

According to sources of the French business paper La Tribune, Continental failed to “deliver its connected navigation and entertainment systems to a Citroen plant in Rennes.” At another plant in Sochaux, the supplier is reportedly unable to deliver touch screens for Peugeot cars.

In April 2022, the carmaker announced its joint venture with LG Energy Solution to build Ontario’s “first large-scale” electric vehicle battery manufacturing plant, estimated to cost $5 billion to erect.

Stellantis last traded at US$12.89 on the NYSE.


Information for this briefing was found via Reuters and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

The post Stellantis Acquires Stake In Decarbonized Lithium Producer Vulcan For €50 Million appeared first on the deep dive.

nyse

electric vehicle

Gold

Up, Up, Down, Down: Which commodities won and lost in July?

Coal and nickel led the gains in July as iron ore, nickel and copper recovered from a mid-month blip on … Read More
The post Up, Up, Down, Down: Which…

Continue Reading
Gold

Guy on Rocks: Could it be right place, right time for this ASX graphite junior as Chinese anode production booms?

With Chinese anode production forecast to increase sharply, ASX graphite junior SGA could be in the right place at the … Read More
The post Guy on Rocks:…

Continue Reading
Lithium

7 Stocks to Buy and Hold Forever

With many good stocks beaten down due to unwarranted worries about the Federal Reserve, now is an excellent time to identify stocks to buy and hold for…

Continue Reading

Trending