Stellantis Invests $100M In CTR To Boost Decarbonization Drive

Stellantis NV STLA penned a deal with Controlled Thermal Resources Holdings Inc. (CTR) for a major investment of more than $100 million to advance the development of the Hell's Kitchen project.

The investment is a part of Stellantis' aim to advance the decarbonization of battery electric vehicle (BEV) supply chains.

Hell's Kitchen is a large geothermal lithium project with a total resource capacity to produce up to 300,000 metric tons of lithium carbonate equivalent yearly. 

CTR will start supplying battery-grade lithium hydroxide monohydrate (LHM) to Stellantis in 2027.

Apart from this, the companies extended the initial supply agreement over ten years.

As per this, CTR will annually supply up to 65,000 metric tons of battery-grade LHM, including the original lithium supply agreement signed by both companies in June 2022 for up to 25,000 metric tons of LHM per year.

This will support Stellantis' U.S. product offensive and Dare Forward 2030 plan, which comprises attaining a 100% passenger car BEV sales mix in Europe and a 50% passenger car and light-duty truck BEV sales mix in the U.S. by 2030.  

To achieve these sales targets, the company is securing around 400 GWh of battery capacity, supported by six battery manufacturing plants in North America and Europe. 

Stellantis targets to become a carbon net zero corporation by 2038.

Last month, STLA reported first-half FY23 revenue growth of 12% year-on-year to €98.4 billion, boosted by higher shipments

The company held €48.9 billion in cash and equivalents as of June 30, 2023.

Price Action: STLA shares are trading higher by 0.45% at $18.00 premarket on the last check Thursday.

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