Stellantis invests $100M into California geothermal lithium project

The maker of Chrysler, Dodge, Jeep and Ram vehicles is investing more than $100 million into a geothermal lithium project in California.

Stellantis NV announced last year a binding 10-year agreement with Controlled Thermal Resources Holdings Inc. to supply lithium hydroxide monohydrate starting in 2027 for electric-vehicle batteries. The strengthened partnership increases that expected supply from 27,558 tons (25,000 metric tons) to as much as 71,650 tons (65,000 metric tons) per year from the Hell’s Kitchen project.

As the industry worries that the ramping-up of EV production could result in a shortage of needed battery materials, having a secure supply of critical resources like lithium is a strategic move. Stellantis seeks to introduce more than 25 all-electric vehicles by 2030 to represent more than half of U.S. sales.

“With electric vehicle adoption growing rapidly in the U.S. and throughout the world, it has never been more important to ensure battery materials are sourced and produced responsibly,” CTR CEO Rod Colwell said in a statement. “Through localizing the battery supply chain, we can minimize supply chain risk and create thousands of jobs in a disadvantaged community.

CEO Carlos Tavares previously said the automaker has secured battery materials through 2027. It also last month announced plans for a third battery plant in North America to start production in 2027.

CTR’s Hell’s Kitchen project, which expects to produce 330,693 tons (300,000 metric tons) of the lithium hydroxide each year, will recover the material from the Salton Sea geothermal brines using renewable energy and stream. It eliminates the need for evaporation brine ponds, open pit mines and fossil-fueled lithium processing, according to the miner. Stellantis is seeking to be carbon net-zero by 2038.

“The foundation of our industry-leading decarbonization drive includes low-emissions production and sustainable supply as the building blocks for our electric vehicles,” Tavares said in a statement. “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.”