Electric vehicle maker Stellantis has signed a binding offtake agreement with Controlled Thermal Resources (CTR) for the supply of battery grade lithium hydroxide for use in the former’s North American battery production plans.
CTR will supply Stellantis with up to 25,000 metric tons per year of lithium hydroxide over the 10-year term of the agreement.
CTR’s Hell’s Kitchen Project in California’s Imperial County in the US will recover lithium from geothermal brines using renewable energy and steam to produce battery grade lithium products in an integrated, closed-loop process.
The process eliminates the need for evaporation brine ponds, open pit mines, and fossil-fueled processing, say Stellantis.
CTR aims to produce battery grade lithium hydroxide and lithium carbonate along with geothermal energy in Imperial County, California with a resource production capacity in excess of 300,000 metric tons per year.
Stellantis announced in late 2021 a similar supply deal to support its European vehicle production.
Carlos Tavares, Stellantis CEO, said: “In the fight against global warming, bolstering our battery electric vehicle supply chain to support our bold electrification ambitions is absolutely critical.
“Ensuring we have a robust, competitive, and low-carbon lithium supply from various partners around the world will enable us to meet our aggressive electric vehicle production plans in a responsible manner.”
Stellantis plans to reach five million EV sales by 2030, and increase its battery capacity to around 400GWh, to be supported by five battery manufacturing plants in Europe and North America, together with additional supply contracts as part of its Dare Forward 2030 strategic plan.
