Carmaker Stellantis (NYSE: STLA) today announced a major investment of over $100 million to advance the development of geothermal lithium project in California and encourage decarbonization of battery electric vehicle supply chains.
According to the company’s statement, Stellantis will invest over $100 million to advance the development of the Hell’s Kitchen project, owned by Controlled Thermal Resources Holdings (CTR).
The company said that Hell’s Kitchen is the world’s largest geothermal lithium project with a total resource capacity to produce up to 300,000 metric tons of lithium carbonate equivalent each year.
Additionally, the companies agreed to expand the initial supply agreement, which now calls for CTR to supply up to 65,000 metric tons of battery-grade lithium hydroxide monohydrate (LHM) each year over a 10-year contract term.
This new agreement incorporates the original lithium supply agreement signed by both companies in June 2022 for up to 25,000 metric tons of LHM per year.
Stellantis added that CTR’s Hell’s Kitchen project in California’s Imperial County will recover lithium from geothermal brines using renewable energy and steam to produce “truly green” battery-grade lithium products in a fully integrated process.
“This eliminates the need for evaporation brine ponds, open pit mines and fossil-fueled lithium processing,” the company said.
CTR is scheduled to commence battery-grade lithium hydroxide monohydrate supply for Stellantis in 2027.
“The foundation of our industry-leading decarbonization drive includes low-emissions production and sustainable supply as the building blocks for our electric vehicles,” Stellantis CEO Carlos Tavares said. “The latest agreement with CTR is an important step in our care for our customers and our planet as we work to provide clean, safe and affordable mobility in North America.”
Stellantis is one of the world’s leading automakers and a mobility provider. Its brands include Abarth, Alfa Romeo, Chrysler, Citroën, Dodge, DS Automobiles, Fiat, Jeep®, Lancia, Maserati, Opel, Peugeot, Ram, Vauxhall, Free2move and Leasys. Controlled Thermal Resources Holdings (CTR) specializes in critical minerals, battery-grade lithium chemicals, and renewable energy production with projects in advanced development in the United States.