Stellantis to invest more than $100 million in California-based lithium producer

Automaker Stellantis has announced an investment of over $100 million in California’s Controlled Thermal Resources, a move that demonstrates its commitment to the direct lithium extraction (DLE) sector. As the transition to green energy gains momentum and concerns rise about potential lithium shortages due to high demand forecasts and the U.S. Inflation Reduction Act, companies are actively exploring new sources of the crucial electric vehicle battery metal.

DLE technologies aim to extract lithium mechanically from saline brine deposits, bypassing the need for environmentally challenging open-pit mines or large evaporation ponds, which are common methods of lithium extraction.

Stellantis, the parent company of brands like Chrysler and Jeep, plans to invest in Controlled Thermal Resources and significantly increase its lithium purchase from the company. The company aims to triple the amount of lithium it buys from Controlled Thermal, with a boosted order of 65,000 metric tons annually for at least a decade, beginning in 2027.

Controlled Thermal Resources is planning to invest over $1 billion in separating lithium from superhot geothermal brines sourced from California’s Salton Sea. The brines will be used to produce electricity, which is expected to reduce the carbon emissions associated with lithium production. The company has developed a facility to remove unwanted metals from the brine, and it employs licensed DLE equipment from Koch Industries to extract lithium.

Stellantis’ investment in Controlled Thermal Resources aligns with its target of making 50% of its fleet electric by 2030. This partnership is seen as a significant step toward supporting clean, sustainable mobility solutions.

While specific investment figures were not disclosed, Controlled Thermal Resources aims to secure final permits by October and commence construction of a commercial lithium plant shortly thereafter. The company is working with Goldman Sachs to secure additional debt and equity financing.

Controlled Thermal Resources had previously agreed to supply lithium to General Motors by 2024, but that timeline has been extended to 2025. Stellantis also has investments in other lithium-related projects, including Vulcan Energy Resources, which is developing a direct lithium extraction project in Germany.

Elevate your business with QU4TRO PRO!

Gain access to comprehensive analysis, in-depth reports and market trends.

Interested in learning more?

Sign up for Top Insights Today

Sign up for Top Insights Today

Top Insights Today delivers the latest insights straight to your inbox.

You'll get daily industry insights on

Energy, Cleantech, Oil & Gas, Mining, Defense, Aviation, Construction, Transportation, Online Retail, Bigtech, Finance and Politics of Business

By clicking subscribe you agree to our privacy and cookie policy and terms and conditions of use.

Read more insights

Canada’s Brookfield acquires UK’s Banks Renewables for $1 billion, shifting focus on Europe

Canadian investment firm Brookfield is making a significant move into the renewable energy sector with its acquisition of the renewable energy division of Banks Group, a UK-based company with diverse businesses including mining and transport. While the deal’s financial specifics weren’t provided…

Global upstream M&A surpasses $64 billion in 2024, with more on the way

The global upstream industry is poised for another $150 billion worth of dealmaking throughout the remainder of the year. While the focus has predominantly been on the Permian Basin in the U.S., other shale plays are gaining traction, particularly in North America. M&A activity in the global upstream…

US takes key step to secure domestic uranium supply with initial DOE contracts

The U.S. Department of Energy (DOE) has taken a significant step toward reducing reliance on Russian uranium by awarding initial contracts to six companies to produce domestic uranium fuel for conventional nuclear power plants. This effort aims to establish a robust domestic uranium supply chain, particularly in light of…

Stay informed

error: Content is protected !!