Stellantis' Battery Material Investment

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【Summary】Stellantis has invested $100m in Controlled Thermal Resources (CTR) for their Hell's Kitchen project. The companies have expanded their supply deal for lithium carbonate, which will enhance the eligibility of BEVs for consumer incentives under the US Inflation Reduction Act. CTR will provide 65,000 tonnes of battery-grade lithium hydroxide monohydrate annually for 10 years.

FutureCar Staff Aug 17, 2023 10:38 AM PT

Stellantis, a multinational automotive company, has made a significant investment of US$100m in Controlled Thermal Resources (CTR) to support the advancement of CTR's Hell's Kitchen project.

As part of their collaboration, Stellantis and CTR have expanded their supply agreement for lithium carbonate, a crucial component for electric vehicle (EV) batteries. This expanded deal aims to enhance the eligibility of Stellantis vehicles for consumer incentives under the US Inflation Reduction Act (IRA).

Under the revised supply agreement, CTR will provide 65,000 tonnes of battery-grade lithium hydroxide monohydrate (LHM) annually for a duration of 10 years. This is a significant increase from the initial agreement signed in June 2022, which was originally set for up to 25,000 tonnes.

The first batch of the lithium supply is expected to be delivered in 2027.

The Hell's Kitchen project, based in California, focuses on extracting lithium from geothermal brines using renewable energy and steam. This innovative approach eliminates the need for traditional methods such as evaporation brine ponds, open pit mines, and fossil fuel-based lithium processing.

Once fully developed, the Hell's Kitchen project is projected to create 480 construction jobs and 940 direct project jobs, providing a significant boost to the local economy.

With an annual total capacity of 300,000 tonnes of lithium carbonate, Hell's Kitchen is touted as "the world's largest geothermal lithium project." This ambitious project aims to meet the growing demand for lithium, a critical resource for the production of EV batteries.