Stellantis to invest more than $100 million in California-based lithium producer
- August 18, 2023
- Posted by: Quatro Strategies
- Categories: Europe, Mining & Metals, United States
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.
Interested in learning more?
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
Read more insights
Copper leads gains as markets welcome 90-day pause in trade war
Industrial metals rose on Tuesday as markets balanced optimism from the temporary US-China tariff truce with lingering concerns about inflation and economic growth. Copper led gains, climbing 0.8% to close at $9,599.50 per ton on the London Metal Exchange.
Zinc rose 0.9%, while aluminum edged up 0.4%. The gains followed the announcement of a 90-day pause in tariff hikes between the world’s two largest economies, a move that eased pressure on global commodities after weeks of intense trade-related volatility.
TotalEnergies, Exxon eyeing Guyana shallow-water oil and gas exploration blocks
In Guyana’s inaugural competitive auction for oil and gas exploration, consortia led by major energy players TotalEnergies and Exxon Mobil have submitted bids for separate shallow-water blocks. This marks a significant step for Guyana as it seeks to expand its oil and gas sector…
U.S.-Saudi $142 billion arms deal deepens strategic ties
The United States has agreed to sell Saudi Arabia an arms package valued at nearly $142 billion, a record-breaking deal hailed by the White House as the largest defense cooperation agreement in U.S. history. Announced during President Donald Trump’s visit to Riyadh, the deal spans over a dozen U.S. defense contractors and encompasses a wide range of military systems, including air and missile defense, maritime security, communications, and advanced air and space capabilities.
A White House fact sheet described the package as a clear sign of Washington’s commitment to deepening its strategic partnership with Riyadh. While the statement did not list specific weapons systems or contractors, the deal is expected to include C-130 transport aircraft, missiles, radars, and possibly other systems from major defense firms such as Lockheed Martin, RTX Corp, Boeing, and Northrop Grumman.
