Stellantis secures lithium supply from California

Concerned with the increasing supply shortage of electric vehicle (EV) batteries, Stellantis has made a move to secure lithium sources for its EV production in North America. 

According to the statement made by the multinational automotive giant, Stellantis partnered with Controlled Thermal Ltd (CTR) to supply up to 25,000 metric tons of lithium hydroxide per year for the coming decade. 

Stellantis was formed in 2021 through the merger of Italian-American conglomerate Fiat Chrysler and French PSA, aiming to become one of the leading EV makers in the future. On this path, Stellantis announced its plans to launch 75 EVs by 2030 and reach an annual sales number of around 5 million. 

By securing lithium sources through CTR, which operates in the Salton Sea in California, Stellantis aims to avoid the rising prices of minerals. The automaker also plans to use two battery chemistries in the future, nickel cobalt-free and nickel-based, to optimise cost and efficiency. 

Prices expected to surge

Even though the EV industry is not facing an imminent shortage of minerals until 2024, the competition for supplies is expected to rise after this year, triggering higher prices. 

Stellantis will need as many EV battery minerals as possible, as the automaker also partnered with Toyota Motor Europe (TME) to produce large-sized light commercial vans (LCVs) in Europe. Stellantis wants to launch 26 EVs in all segments to expand its influence in the commercial market. 

Several other automakers are also setting up plans to secure EV battery supplies. One of them is General Motors (GM), which has struck a bigger deal with CTR, covering 60,000 tons of lithium, enough for producing six million EVs by mid-2024. 

Image courtesy of Stellantis.