Because Stellantis will get electrified with the Austrian startup Vulcan Energy
The Italian-French automotive group Stellantis will become the second shareholder of Vulcan, a supplier of decarbonised lithium, essential for the production of batteries. All the details
Stellantis, the automotive group born from the merger between FCA and PSA, will become the second shareholder of the Vulcan Energy decarbonised lithium supplier. It announced today saying it will invest 50 million euros for the acquisition of an 8% stake in Vulcan Energy Resources. The initial agreement was extended to 10 years.
The holding had already recently entered into a lithium hydroxide supply agreement in North America.
TERMS OF THE AGREEMENT
As reported by Milano Finanza , “Vulcan will now issue approximately 8.5 million shares to Stellantis at AU $ 6.622 per share, equal to a premium of 32.4% over the closing price on 23 June. Its shares closed the session on June 24 up by 26.8% ”.
THE PLANS OF STELLANTIS AND VULCAN
The equity investment, reports the note released by Stellantis, will contribute to the increase in drilling in its Upper Rhine Valley Brine Field (URVBF) for the production expansion planned by Vulcan.
“This highly strategic investment in a leading lithium company will enable us to create a resilient and sustainable value chain for our European production of electric vehicle batteries,” said Carlos Tavares, CEO of Stellantis. "We continue to seek strong relationships with partners who share our values, collectively counter global warming and deliver clean, safe and affordable mobility to our customers."
A MORE SUSTAINABLE LITHIUM EXTRACTION
Vulcan, an Austrian-German start-up, is already producing geothermal energy at its URVBF site and, as part of the Zero Carbon Lithium project, plans to produce lithium hydroxide without fossil fuels and with a net carbon footprint of zero. Vulcan, in fact, writes MF , “is testing a method of direct extraction of lithium that uses less earth and groundwater, making it more sustainable than the more common open pit mines and brine evaporation ponds”.
"Stellantis' significant investment in Vulcan and the Zero Carbon Lithium project represents a clear stance by one of the world's largest car manufacturers on the sustainable and strategic sourcing of battery materials," said the director. Vulcan delegate, Francis Wedin.
“We are fully in line with Stellantis' decarbonisation and electrification goals, which are among the most ambitious in the industry. It is encouraging – he added – to see a leading automotive manufacturer investing in local production of low-carbon lithium for electric vehicles. As our main buyer, we look forward to deepening the relationship with Stellantis, a major shareholder of Vulcan and our Zero Carbon Lithium business ”.
THE GREEN PROJECTS OF STELLANTIS AND VULCAN
As part of the strategic plan Dare Forward 2030, the note reads, Stellantis announced the goal of covering by 2030 100% of the sales mix of battery electric cars (BEVs) in Europe and 50% of passenger cars and BEV light commercial vehicles in the United States.
Stellantis promises to be the industry benchmark in combating climate change, with the goal of reaching the net zero emissions target by 2038, with a 50% reduction by 2030.
For five years starting in 2026, Stellantis – under a binding agreement signed in November 2021 – must receive between 81 and 99,000 tons of lithium hydroxide for batteries from Germany from Vulcan. Vulcan, MF recalls, also has lithium supply agreements with other companies: the French carmaker Renault SA, the Belgian recycling group Umicore NV and the South Korean LG Chem.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/smartcity/perche-stellantis-si-elettrizzera-con-la-startup-austrotedesca-vulcan-energy/ on Fri, 24 Jun 2022 12:40:47 +0000.