Stellantis in $100m Hell’s Kitchen lithium deal

Stellantis in $100m Hell’s Kitchen lithium deal

Business news |
By Nick Flaherty

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Stellantis has invested over $100 million in a geothermal lithium project in California to provide a material supply chain in the US

The agreement with Controlled Thermal Resources Holdings (CTR) boosts supply from 25,000 metric tons to up to 65,000 metric tons per year of battery-grade lithium hydroxide monohydrate.

CTR’s modular production process can easily scale up to recover lithium from geothermal brines using renewable energy and steam without the need for evaporation brine ponds, open pit mines and traditional lithium processing.

The sustainable supply of lithium hydroxide supply will support Stellantis in its US plan of having more than 25 all-new battery electric vehicle (BEV) launches and 50% BEV sales by 2030, tapping support from the US Inflation Reduction Act (IRA).

CTR’s Hell’s Kitchen project 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. The supply agreement 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 incorporates the original supply agreement signed by both companies in June 2022 for up to 25,000 metric tons of LHM per year.

Statevolt, US-based sister company to Italvolt, has already partnered with Controlled Thermal Resources (CTR), which will supply locally sourced lithium, and geothermal power from their Hell’s Kitchen Lithium and Power plant.

“The foundation of our industry-leading decarbonization drive includes low-emissions production and sustainable supply as the building blocks for our electric vehicles,” said Stellantis CEO Carlos Tavares. “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 securing approximately 400 GWh of battery capacity, supported by six battery manufacturing plants in North America and Europe. “This substantial investment in CTR by Stellantis marks an outstanding milestone for our company and further solidifies our efforts to support sustainable electric vehicle battery production,” said CTR Chief Executive Officer Rod Colwell.

“With electric vehicle adoption growing rapidly in the US and throughout the world, it has never been more important to ensure battery materials are sourced and produced responsibly. Through localizing the battery supply chain, we can minimize supply chain risk and create thousands of jobs in a disadvantaged community. We applaud the leadership of Stellantis and look forward to working together to set new industry benchmarks for reliability, efficiency, and sustainability,” he said.

CTR is scheduled to start supplying Stellantis in 2027.;


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