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- Vulcan Energy (VUL) signs a binding agreement to supply battery grade lithium hydroxide to Stallantis N.V, commencing in 2026
- The offtake agreement will see Vulcan supply a minimum of 81,000 tonnes from its Zero Carbon Lithium Project in Germany over the duration of the five year agreement
- This will be used by three Stellantis battery production facilities in Europe to produce at least 120 gigawatt hours of cell capacity by 2030
- The agreement is subject to the successful start of commercial operation and full product qualification, with pricing to be based on market prices.
- Vulcan Energy last traded at $10.25 on November 26
Vulcan Energy (VUL) has signed a binding agreement to supply lithium hydroxide to Stallantis N.V, commencing in 2026.
The offtake agreement will see Vulcan supply a minimum of 81,000 tonnes of battery-grade lithium hydroxide over the duration of the five-year agreement.
The agreement is capped at 99,000 tonnes and will be used to supply Stellantis with a sustainable supply of lithium.
The battery-grade lithium hydroxide will be used by the three Stellantis battery production facilities in Europe to produce at least 120-gigawatt hours of cell capacity by 2030.
Vulcan’s lithium hydroxide will come from its Zero Carbon Lithium Project, Europe’s largest lithium resource, located in Germany.
It is hoped that by 2030, more than 70 per cent of Stellantis’ European sales, and more than 40 per cent of its U.S. sales will be low emission vehicles (LEVs). This plan calls for five battery cell manufacturing plants in Europe, and the United States, with a total capacity of 260-gigawatt hours (GWh).
Managing Director of Vulcan, Francis Wedin, said the agreement aligns with the company’s mission to decarbonise the lithium-ion battery and electric vehicle supply chain.
“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,” said Dr Wedin.
“We look forward to a long and productive relationship between Vulcan and Stellantis, as we work to achieve our shared sustainability and decarbonisation ambitions.”
The agreement is subject to the successful start of commercial operation and full product qualification, with pricing to be based on market prices.
Vulcan Energy last traded at $10.25 on November 26.
