By Michelle Chapman
AP Business Writer
Automaker Stellantis has reached an agreement for Controlled Thermal Resources Ltd. provides battery-grade lithium hydroxide for its electric vehicles in North America.
CTR will supply Stellantis, the company that combined PSA Peugeot and Fiat Chrysler, with up to 25,000 metric tons per year of lithium hydroxide over the 10-year term of the agreement.
CTR will produce battery-grade lithium hydroxide and lithium carbonate as well as geothermal power in California with resource production capacity in excess of 300,000 metric tons per year.
“Ensuring we have a robust, competitive, low-carbon lithium supply from diverse partners around the world will allow us to responsibly deliver on our aggressive electric vehicle production plans,” said Stellantis CEO. , Carlos Tavares, in a statement Thursday.
Last month, the Biden administration announced $3.1 billion in funding to U.S. companies that manufacture and recycle lithium-ion batteries. This is part of the administration’s ongoing efforts to significantly increase electric vehicle sales.
The new program will provide grants to companies that process or recycle battery components. The grants are intended to help bolster U.S. energy independence and support Biden’s goal of having electric vehicles account for half of all vehicle sales in America by 2030.
In November, Stellantis announced that it had secured a five-year supply of battery-grade lithium hydroxide in Europe to support its plans to convert 98% electrified vehicles by 2025. Stellantis signed a binding agreement with Vulcan Energy Resources Ltd . in Germany. Vulcan will supply between 81,000 metric tons and 99,000 metric tons of lithium hydroxide over the five-year term of the agreement.