Global automaker Stellantis has entered into an offtake deal with Controlled Thermal Resources to supply battery-grade lithium hydroxide for the production of electric vehicles, the companies said on June 2 in a joint statement.
The 10-year agreement will see CTR supply Stellantis with up to 25,000 mt/year of lithium hydroxide.
No contract pricing details were provided.
Stronger demand for EVs has sent battery metal prices soaring, with Platts seaborne lithium carbonate and lithium hydroxide assessments jumping by 122% and 140%, respectively, since the start of 2022 to $75,000/mt CIF North Asia and $76,000/mt CIF North Asia as of June 2, S&P Global Commodity Insights data showed.
The agreement establishes new sustainability standards for the US battery supply chain, the companies said, as CTR's Hell's Kitchen site in California will extract lithium from geothermal brines using renewable energy and steam to make battery-grade lithium products in an integrated, closed-loop process that replaces evaporation brine ponds, open-pit mines, and fossil-fuel processing.
A sustainable lithium hydroxide supply supports Stellantis’ plans to launch more than 25 all-new battery electric vehicles (BEVs) in the US and reach 50% BEV sales by 2030, it added.
“Strengthening our battery electric vehicle supply chain to enable our ambitious electrification targets is critical in the fight against global warming,” Carlos Tavares, CEO of Stellantis, said in a statement.
In November 2021, Stellantis signed a similar five-year deal with Vulcan Energy for 81,000–99,000 mt of lithium hydroxide to support its EV production in Europe.
Globally, Stellantis stated it expects total annual BEV sales to be 5 million vehicles by the year 2030: reaching 100% of passenger car sales in Europe and 50% of passenger car and light-duty truck sales in North America. The company intends to supply the capacity with five battery manufacturing plants in Europe and North America along with supply contracts totaling 400 GWh.
