California-based Controlled Thermal Resources (CTR) has signed a binding offtake agreement to supply battery grade lithium hydroxide for use in Stellantis’ North American electrified vehicle production.
CTR’s Hell’s Kitchen Project in Southern California’s Imperial County will recover lithium from geothermal brines utilising renewable energy and steam to produce battery grade lithium products in an integrated, closed-loop process, eliminating the need for evaporation brine ponds, open pit mines, and fossil-fuelled processing.
“In the fight against global warming, bolstering our battery electric vehicle supply chain to support our bold electrification ambitions is absolutely critical,” said Carlos Tavares, Stellantis CEO. “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.”
“This definitive offtake agreement with Stellantis sets a new benchmark for the automotive industry in the United States,” said Rod Colwell, CTR’s CEO. “Securing clean lithium produced with energy from a renewable resource helps to further decarbonise the battery supply chain which in turn, delivers cleaner cars with less environmental impact.”
CTR will supply Stellantis with up to 25,000 metric tons per year of lithium hydroxide over the 10-year term of the agreement. Stellantis announced in late 2021 a similar supply deal to support its European vehicle production.
As part of the Dare Forward 2030 strategic plan, Stellantis announced plans to have global annual battery electric vehicle sales of five million vehicles by 2030, reaching 100% of passenger car BEV sales mix in Europe and 50% passenger car and light-duty truck BEV sales mix in North America. Stellantis also increased planned battery capacity by 140 GWh to approximately 400 GWh, to be supported by five battery manufacturing plants in Europe and North America, together with additional supply contracts.