Electric vehicle maker Stellantis will buy lithium produced at Salton Sea
A major electric vehicle manufacturer has inked a 10-year deal with a company operating at the south end of the Salton Sea for battery-grade lithium hydroxide, a huge boost for nascent production in an area that has long struggled with unemployment and pollution.
Controlled Thermal Resources' Hells Kitchen project has signed a binding agreement with Stellantis N.V. to supply the product for use in Stellantis’ North American electrified vehicle production.
CTR’s Hell’s Kitchen subsidiary is pushing to scale up commercial production of lithium from geothermal brines, utilizing renewable energy and steam to produce batter-grade lithium products in an integrated, closed-loop process, eliminating the need for more environmentally damaging evaporation brine ponds, open pit mines, and fossil-fueled production.
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“In the fight against global warming, bolstering our battery electric vehicle supply chain to support our bold electrification ambitions is absolutely critical,” said Carlos Tavares, Stellantis CEO. “Ensuring we have a robust, competitive, and low-carbon lithium supply from various partners around the world will enable us to meet our aggressive electric vehicle production plans in a responsible manner.”
Stellantis, a multinational automotive manufacturer, was formed in 2021 by a 50-50 cross-border merger between the Italian-American conglomerate Fiat Chrysler Automobiles and the French PSA Group.
“This definitive offtake agreement with Stellantis sets a new benchmark for the automotive industry in the United States,” said Rod Colwell, Controlled Thermal Resources’ CEO. “Securing clean lithium produced with energy from a renewable resource helps to further decarbonize the battery supply chain, which in turn, delivers cleaner cars with less environmental impact. We look forward to a strong and successful relationship with Stellantis.”
CTR will supply Stellantis with up to 25,000 metric tons per year of lithium hydroxide over the 10-year term of the agreement. Stellantis in late 2021 announced a similar supply deal to support its European vehicle production.
Stellantis has announced plans to have global annual battery electric vehicle sales of 5 million vehicles by 2030, reaching 100% of all electric passenger car sales in Europe and 50% passenger car and light-duty electric truck sales mix in North America. Stellantis also increased planned battery capacity by 140 GWh to approximately 400 GWh, to be supported by five battery manufacturing plants in Europe and North America, together with additional supply contracts.
CTR is aiming to produce more than 300,000 metric tons per year of battery-grade lithium hydroxide and lithium carbonate along with geothermal energy on a 7,000-acre campus, much of it on shoreline emerging from the fast-dwindling Salton Sea.
It is one of three companies pushing to begin commercial production of the lightweight metal compounds, which are vital for car batteries, smartphones and other products, in the area, which has one of the highest unemployment rates in the state.
More: Near the Salton Sea, residents want the federal government to address health concerns
Janet Wilson is senior environment reporter for The Desert Sun, and co-authors USA Today's Climate Point newsletter. She can be reached at jwilson@gannett.com or @janetwilson66 on Twitter
This article originally appeared on Palm Springs Desert Sun: Stellantis will buy lithium produced at Salton Sea by Controlled Thermal Resources
