Vulcan Energy Resources will supply Stellantis Group in Europe with battery-grade lithium hydroxide for electric vehicles. The partners have signed a five-year contract.
Vulcan Energy produces CO2-free lithium
Vulcan Energy
The supply agreement with Vulcan is part of Stellantis’ electrification strategy, with battery-grade lithium hydroxide deliveries scheduled to begin in 2026. The automaker hopes this will ensure the availability of the raw material for electric vehicle battery packs. Vulcan will supply Stellantis with a minimum of 81,000 t and a maximum of 99,000 t of lithium hydroxide over the five-year term of the agreement. Low-emission vehicles are expected to account for more than 70 % of sales of Stellantis’ 14 brands in Europe and more than 40 % in the U.S. by 2030.
Vulcan Energy Resources uses geothermal energy in the Upper Rhine Valley in Germany to produce battery-grade lithium hydroxide. It is extracted from brine with minimal water consumption and without the use of fossil fuels. This reduces carbon generation in the battery materials supply chain. The zero-carbon lithium project also shortens transportation distances for lithium chemicals to Europe. Vulcan Energy has already signed supply agreements with battery manufacturer LG Energy Solutions and the Renault Group, among others.