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18 August 2023

Daily Newsletter

18 August 2023

Stellantis invests in battery materials

Raised annual offtake by 40,000 tonnes

Luke Martin August 17 2023

Stellantis has invested US$100m in Controlled Thermal Resources (CTR) to advance CTR’s Hell’s Kitchen project. 

The companies have also expanded their supply deal for lithium carbonate which would help vehicles’ BEV eligibility for consumer incentives under the US Inflation Reduction Act (IRA). 

Under this revised supply agreement, CTR would provide 65,000 tonnes of battery grade lithium hydroxide monohydrate (LHM) annually for 10 years. This followed the initial lithium supply deal inked in June 2022, originally slated for up to 25,000 tonnes.

The first supply is expected in 2027.

Based in California, the project would recover lithium from geothermal brines using renewable energy and steam to produce battery grade lithium products. Stellantis said this eliminated the need for evaporation brine ponds, open pit mines and fossil fuelled lithium processing.

CTR would create 480 construction jobs and 940 direct project jobs when the resource was fully developed.

Hell’s Kitchen was claimed to be “the world’s largest geothermal lithium project” with an annual total capacity of 300,000 tonnes of lithium carbonate.

High upfront costs could be detrimental towards the growth of the off-highway EV market

The global off-highway electric market is expected to grow at a CAGR of 17.4% by 2030, per GlobalData estimates. Despite the strong growth, high upfront costs may pose a challenge. Due to the high capacity of these vehicles, they consume large amounts of power from a number of battery packs installed on the vehicle, whose high cost in turn adds to the cost of the vehicle, thereby increasing the initial cost. However, governments worldwide are offering subsidies and tax exemptions in order to help customers to counter the initial purchase cost.

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