By Michael Elkins
Stellantis(NYSE:STLA) announced Thursday that the Dodge Jeep Ram parent company has secured lithium essential for its electric vehicle production in North America from a project in California. According to Stellantis, Controlled Thermal Resources Ltd (CTR) will supply up to 25,000 metric tons per year of lithium hydroxide over the 10-year term of the agreement.
It's expected to begin producing in 2024. A single battery typically uses a few grams of the mineral, which is largely sourced from China today and whose price has increased in recent years. No details were provided on the financial terms of the agreement.
The company has also said it expects a shortage of EV batteries to hit the auto industry in 2024-2025 as manufacturers try to ramp up EV sales while building new battery factories.
"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," said Chief Executive Carlos Tavares in a statement.
Based in Australia and operating out of California’s Salton Sea, CRT is also developing a geothermal lithium brine project to meet General Motors' (NYSE:GM) lithium needs.