Sources of lithium are quickly becoming a major issue for automakers the world over and Stellantis and General Motors are attempting to shore up their positions in this critical area where scarcity and exploitation are major areas of major concern.
Stellantis said this week said it has signed an agreement with Vulcan Energy Resources for a supply of “battery-grade lithium hydroxide” for use in electrified vehicles built by the Stellantis Group in Europe. The five-year agreement calls for shipments to begin in 2026.
Vulcan Energy is a German startup in the Upper Rhine Valley in Germany, which uses geothermal energy to produce battery-quality lithium hydroxide from brine without the use of fossil fuels and minimal water usage, reducing the generation of carbon in the battery metals supply chain.
“The definitive offtake agreement with Stellantis aligns with our mission to decarbonize the lithium-ion battery and electric vehicle supply chain,” said Francis Wedin, Vulcan Managing founder and director.
“The Vulcan Zero Carbon Lithium Project also intends to reduce the transport distance of lithium chemicals into Europe, and our location in Germany, proximal to Stellantis’ European gigafactories, is consistent with this strategy,” he added.
Deal fits Stellantis EV strategy
Michelle Wen, Stellantis Chief Purchasing and Supply Chain Office, said, “Stellantis is moving forward on its electrification strategy with speed and power. This agreement is further proof that we have the competitive spirit to deliver on our commitments.”
Even with lithium in short supply, Stellantis expects more than 70% of its vehicle sales in Europe and more than 40% of vehicle sales in the United States will be low emission vehicles (LEV) by 2030.
Each of the company’s 14 vehicle brands is committed to offering best-in-class fully electrified solutions, according to Stellantis, which expects to invest $36 billion through 2025 in EV research and development.
GM pledges support for responsible mining
Meanwhile, with the hunt for lithium being compared in the press to search for “blood diamonds,” General Motors joined the Initiative for Responsible Mining Assurance. The group champions responsible mining practice through a broad set of standards covering the four principles of Business Integrity, Planning for Positive Legacies, Social Responsibility and Environmental Responsibility. The agreement covers mining of rare materials such as lithium.
As automotive battery demand expands globally, access to battery materials is of increasing importance. Given the critical role of EVs in reducing the carbon footprint of the transportation sector, GM is committed to the responsible sourcing of the mined materials needed for EV production, GM said in a statement.
“GM recognizes the significant role we play within our supply chain, and we’re committed to making sure it reflects our dedication to social and environmental priorities,” said Shilpan Amin, GM vice president, Global Purchasing and Supply Chain.
“Joining IRMA will help us conduct business with suppliers and partners whose standards and actions align with our approach to integrity, responsible sourcing and supply chain management. As we shift to an all-electric future, we look forward to helping advance the establishment of a responsible mining industry alongside other IRMA members.”
GM noted it already requires suppliers to meet its standards and adhere to company values throughout the supply chain. The IRMA certification builds on this requirement as it encourages comprehensive, GM said. The third-party assessments of mining practices consider a range of issues including health and safety, waste management, and compliance with local and international laws.