Stellantis boosts U.S. lithium production with CTR investment

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【Summary】Stellantis is investing over $100 million in Controlled Thermal Resources (CTR) to develop the world's largest geothermal lithium project in California. The project aims to produce up to 300,000 metric tons of lithium carbonate equivalent annually, supporting Stellantis vehicles' eligibility for consumer incentives. The companies have also expanded their supply agreement, with CTR set to supply up to 65,000 metric tons of battery-grade lithium hydroxide monohydrate each year.

FutureCar Staff Aug 18, 2023 6:56 AM PT

Stellantis boosts U.S. lithium production with CTR investment

Stellantis N.V. and Controlled Thermal Resources Holdings Inc. (CTR) have announced a significant investment of over $100 million from Stellantis to support the development of CTR's Hell's Kitchen project. This project is the largest geothermal lithium project in the world and has the capacity to produce up to 300,000 metric tons of lithium carbonate equivalent annually. The lithium produced at Hell's Kitchen will help Stellantis vehicles qualify for consumer incentives under the U.S. Inflation Reduction Act (IRA).

In addition, the companies have expanded their initial supply agreement. CTR will now supply up to 65,000 metric tons of battery-grade lithium hydroxide monohydrate (LHM) per year for a 10-year contract term. This new agreement builds upon the original lithium supply agreement signed by both companies in June 2022, which allowed for the supply of up to 25,000 metric tons of LHM annually.

The Hell's Kitchen project, located in California's Imperial County, will use renewable energy and steam to recover lithium from geothermal brines. This sustainable process will produce environmentally friendly battery-grade lithium products without the need for evaporation brine ponds, open pit mines, or fossil-fueled lithium processing.

Stellantis CEO Carlos Tavares emphasized the company's commitment to decarbonization and sustainability, stating that low-emissions production and sustainable supply are essential for their electric vehicles. He sees the expanded agreement with CTR as an important step towards providing clean, safe, and affordable mobility in North America.

As part of its Dare Forward 2030 strategic plan, Stellantis aims to achieve a 100% passenger car battery electric vehicle (BEV) sales mix in Europe and a 50% BEV sales mix for passenger cars and light-duty trucks in the United States by 2030. To meet these targets, the company is securing approximately 400 GWh of battery capacity and establishing six battery manufacturing plants in North America and Europe. Stellantis is also working towards becoming a carbon net zero corporation by 2038, including all scopes, with single-digit percentage compensation for remaining emissions.

CTR Chief Executive Officer Rod Colwell expressed his excitement about the investment from Stellantis, stating that it is a significant milestone for their company and reinforces their commitment to sustainable electric vehicle battery production. With the increasing adoption of electric vehicles worldwide, Colwell believes it is crucial to source and produce battery materials responsibly. By localizing the battery supply chain, they can minimize supply chain risk and create job opportunities in disadvantaged communities.

CTR is expected to begin supplying battery-grade lithium hydroxide monohydrate to Stellantis in 2027. The project is anticipated to create 480 construction jobs through project labor agreements and over 940 direct project jobs once fully developed.

SOURCE: Stellantis