Vulcan Energy inks deal with Stellantis to supply lithium from German project

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A view shows the logo of Stellantis at the entrance of the company's factory in Hordain, France, July 7, 2021. REUTERS/Pascal Rossignol/File Photo

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Nov 29 (Reuters) - Australia-listed lithium developer Vulcan Energy Resources (VUL.AX) on Monday said it signed a binding agreement with Dutch automaker Stellantis NV (STLA.MI) to supply lithium hydroxide from its German project for an initial five-year period.

Vulcan, one of a number of companies testing a direct lithium extraction (DLE) method that uses less land and groundwater, will supply between 81,000 and 99,000 tonnes of battery-grade lithium hydroxide to Stellantis starting 2026.

Stellantis, which plans to invest over 30 billion euros ($33.92 billion) through 2025 to electrify its vehicle lineup, will use the lithium in three of its battery production facilities in Europe, Vulcan said in a statement. read more

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The announcement comes a week after Vulcan signed a second deal with French automaker Renault SA (RENA.PA) to supply between 26,000 to 32,000 metric tonnes of battery-grade lithium chemicals from its geothermal brine deposits in Germany.

Vulcan already has supply deals with Belgian recycling group Umicore NV (UMI.BR) and South Korea's LG Chem Ltd (051910.KS).

Lithium is a core component for making lithium-ion batteries used in electric vehicles. It has gained traction rapidly as the world moves towards cleaner forms of energy.

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Reporting by Harshita Swaminathan; Editing by Karishma Singh

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