Lithium and renewable energy producer Vulcan Energy Resources [ASX:VUL] and multinational automotive manufacturing company, known for cars such as Fiat and Chrysler, Stellantis have furthered their business partnership with their fourth deal for geothermal projects in France.
This will be the first of a multi-phase project to develop new geothermal projects aimed at decarbonising the energy mix of Stellantis’s Mulhouse industrial site.
Even with the lithium theme regaining momentum for some, and with the significance of such a deal, the VUL share price was still falling 4% by the early afternoon.
Worth $3.57 at the time of writing, VUL shares have dropped 40% in the last month and 56% in the last year. A far cry from 2021–22’s lithium bull run, VUL itself is trending 52% behind its sector and a little less in the wider market average:
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Vulan and Stellantis relationship expands
Vulcan Energy has said it will be deepening its working relationship with Stellantis, with a fourth deal regarding their shared geothermal projects.
The deal comes in the fourth year of the business’s partnership, with the latest agreement being for Vulcan to supply renewable energy to the carmaker’s Mulhouse plant in France.
The multi-phase project will consist of a study for the construction of geothermal renewable energy assets for the carmaker’s facility, and presents potential for further lithium production.
If successful, the next phase will focus on more advanced studies and development.
VUL says plans for the renewable energy projects could offer a considerable portion for Mulhouse’s annual energy needs, which could commence as early as 2026.
Stellantis, the carmaker known for notable European car brands as Fiat, Jeep, and Chrysler, has previously signed three lithium hydroxide supply agreements with Vulcan, with plans to develop geothermal energy projects in Germany and produce electric vehicles in Rüsselsheim.
With Vulcan having agreed to provide Stellantis with geothermal renewable energy to decarbonise its French manufacturing plant, the carmaker will aim to source funding for 50% of the project development, with both parties also to seek public funds.
Stellantis has now signed deals with multiple miners to bolster battery supply, hoping to remain in the world’s top-three carmakers entering the energy transition.
Arnaud Deboeuf, Stellantis Chief Manufacturing Officer commented:
‘We are proud to announce another step in our partnership with Vulcan, which demonstrates our commitment to increase the use of decarbonized energy solutions across our facilities.
‘Geothermal is one of many solutions we explore to achieve our sustainability goals in alignment with our Dare Forward 2030 strategic plan.’
Vulcan’s Managing Director and CEO, Dr Francis Wedin, added:
‘Vulcan is here to support Stellantis, our largest lithium customer and one of our major shareholders, to decarbonise its operations in Europe. While we remain focused on execution of our integrated Phase One commercial lithium and renewable energy project, in the centre of the Upper Rhine Valley Brine Field, this project is a complementary opportunity to expand our future development pipeline into the French region of the Upper Rhine Valley, supported by industrial partners like Stellantis.’
Source: VUL
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