Stellantis recently announced an investment of over $100 million to fast-track the development of Controlled Thermal Resources Holdings Inc’s Hell’s Kitchen project. It’s the world’s largest geothermal lithium project, with a total resource capacity to produce up to 300,000 metric tons of lithium carbonate equivalent each year. Lithium produced at Hell’s Kitchen will support Stellantis vehicles’ battery electric vehicle (BEV) eligibility for consumer incentives under the US Inflation Reduction Act (IRA).
Additionally, the companies expanded the initial supply agreement, which now calls for CTR to supply up to 65,000 metric tons of battery-grade lithium hydroxide monohydrate (LHM) each year over a 10-year contract term. This new agreement incorporates the original lithium supply agreement signed by both companies in June 2022 for up to 25,000 metric tons of LHM per year.
Stellantis is one of the world’s leading automakers and a mobility provider. Its storied and iconic brands include Abarth, Alfa Romeo, Chrysler, Citroën, Dodge, DS Automobiles, Fiat, Jeep, Lancia, Maserati, Opel, Peugeot, Ram, Vauxhall, Free2move and Leasys. Powered by its diversity, Stellantis aspires to become the most outstanding, if not the biggest, sustainable mobility tech company.
Through its project companies, CTR specializes in critical minerals, battery-grade lithium chemicals, and renewable energy production with projects in advanced development in the United States. CTR’s leadership team has successfully developed and managed geothermal operations in California’s Salton Sea region for over 30 years. This highly specialized, location-specific knowledge has been instrumental in advancing CTR projects. Construction is expected to commence on Hell’s Kitchen-Stage 1 in late 2023. CTR is committed to delivering sustainable, low-cost lithium products and renewable power to support clean energy initiatives and to ensure a domestic, socially responsible lithium product supply chain in the United States.
Clean lithium from geothermal brines
CTR’s Hell’s Kitchen project in California’s Imperial County will recover lithium from geothermal brines using renewable energy and steam to produce genuinely “green” battery-grade lithium products in a fully integrated process. It eliminates the need for evaporation brine ponds, open pit mines, and fossil-fueled lithium processing.
“The foundation of our industry-leading decarbonization drive includes low-emissions production and sustainable supply as the building blocks for our EVs,” Stellantis CEO Carlos Tavares said. “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.”
As part of the Dare Forward 2030 strategic plan, Stellantis announced plans of reaching a 100% passenger car BEV sales mix in Europe and 50% passenger car and light-duty truck BEV sales mix in the United States by 2030. The company is securing approximately 400 GWh of battery capacity to achieve these sales targets, supported by six battery manufacturing plants in North America and Europe. Stellantis is on track to become a carbon net zero corporation by 2038, all scopes included, with single-digit percentage compensation of remaining emissions.
“This substantial investment in CTR by Stellantis marks an outstanding milestone for our company and further solidifies our efforts to support sustainable EV battery production,” said CTR CEO Rod Colwell. “With EV adoption growing rapidly in the States and throughout the world, it has never been more important to ensure battery materials are sourced and produced responsibly. By localizing the battery supply chain, we can minimize supply chain risk and create thousands of jobs in a disadvantaged community. We applaud the leadership of Stellantis and look forward to working together to set new industry benchmarks for reliability, efficiency, and sustainability.”
CTR will commence battery-grade lithium hydroxide monohydrate supply for Stellantis in 2027. The company expects to create 480 construction jobs through comprehensive project labor agreements and upward of 940 direct project jobs when the resource is fully developed. (Story and image courtesy of Stellantis)