European carmaker Stellantis announced Thursday it will invest over $100 million in US geothermal lithium developer Controlled Thermal Resources (CTR) to advance its lithium supply chain in the country.

The investment will help CTR to progress the development of its Hell’s Kitchen lithium project in California. The project is described by the companies as the world’s largest geothermal lithium project with resources to produce up to 300,000 tonnes/year of lithium carbonate equivalent (LCE). It is located in Imperial County, home to the Salton Sea geothermal field, Kallanish notes.

The carmaker signed in June 2022 a procurement deal with CTR for up to 25,000 t/y of lithium hydroxide monohydrate (LHM). The companies have now expanded the agreement to cover the supply of up to 65,000 t/y of LHM for 10 years, with first deliveries starting in 2027. Commercial terms of the deal have not been disclosed.

“The foundation of our industry-leading decarbonisation drive includes low-emissions production and sustainable supply as the building blocks of our electric vehicles,” says Stellantis’ ceo Carlos Tavares. “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.”

The lithium recovery from geothermal brines using renewable energy and steam produces what the industry calls “truly green” battery-grade lithium products. The production has no evaporation brine ponds, open pit mines or fossil-fuelled lithium processing.  

In addition to the sustainability credentials of the operation, CTR’s chief executive Rod Colwell highlights the benefits of localising battery supply chain: “we can minimise supply chain risk and create thousands of jobs in a disadvantaged community.”

By securing its supply source from a US producer, Stellantis ensures its EVs are eligible for US incentives such as the IRA tax credits of up to $7,500 per electric car. The company plans to launch 25 new battery electric vehicles (BEVs) in North America and reach 50% BEV sales by 2030. It’s also targeting a company-wise carbon net zero status by 2038.