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 support the development of CTR's Hell's Kitchen project, the world's largest geothermal lithium project. This project aims to produce up to 300,000 metric tons of lithium carbonate equivalent per year, supporting Stellantis vehicles' eligibility for consumer incentives.

FutureCar Staff Aug 18, 2023 4:39 PM 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 world's largest geothermal lithium project and has the capacity to produce up to 300,000 metric tons of lithium carbonate equivalent per year. The lithium produced at Hell's Kitchen will contribute to the eligibility of Stellantis vehicles for consumer incentives under the U.S. Inflation Reduction Act.

In addition to the investment, 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) annually for a 10-year contract term. This new agreement builds upon the original lithium supply agreement signed in June 2022, which called for up to 25,000 metric tons of LHM per year.

The Hell's Kitchen project, located in California's Imperial County, aims to recover lithium from geothermal brines using renewable energy and steam. This innovative 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 sustainable supply chains, stating that low-emissions production and sustainable supply are essential for their electric vehicles. He described the agreement with CTR as an important step towards providing clean, safe, and affordable mobility in North America.

As part of their 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 committed to becoming a carbon net zero corporation by 2038, including all scopes, with only a single-digit percentage of remaining emissions.

CTR Chief Executive Officer Rod Colwell expressed his appreciation for Stellantis' investment, highlighting its significance in supporting sustainable electric vehicle battery production. Colwell emphasized the importance of responsibly sourcing and producing battery materials, especially with the growing adoption of electric vehicles worldwide. He also noted that localizing the battery supply chain can reduce supply chain risks and create job opportunities in disadvantaged communities. Colwell commended the leadership of Stellantis and expressed enthusiasm for working together to establish new industry benchmarks for reliability, efficiency, and sustainability.

CTR is scheduled to begin supplying battery-grade lithium hydroxide monohydrate to Stellantis in 2027. The company expects to generate 480 construction jobs through project labor agreements and create over 940 direct project jobs once the resource is fully developed.

SOURCE: Stellantis