(Alliance News) - Stellantis NV and Controlled Thermal Resources Holdings Inc. on Thursday announced a major investment of more than USD100 million by the automaker to advance the development of CTR's Hell's Kitchen project, the World's largest dedicated lithium geothermal project.

The project will produce up to 300,000 tons of lithium carbonate equivalent per year. The lithium produced at Hell's Kitchen will enable Stellantis' BEVs to access incentives under the U.S. Inflation Reduction Act.

The companies also extended the initial supply agreement so that now CTR has committed to supply up to 65,000 tons of lithium hydroxide for batteries per year for the ten-year term of the contract. The new agreement incorporates the original contract, signed in June 2022, which called for the supply of up to 25,000 tons of LHM per year.

CTR's Hell's Kitchen project in Imperial County, California, involves extracting lithium from geothermal brines using renewable energy and steam to obtain truly green battery lithium products in a fully integrated process. This eliminates the need for brine evaporation ponds, open-pit mining and the use of fossil fuels to process lithium.

"Our industry-leading push for decarbonization is based on low-emission production systems and a sustainable supply chain to make our electric vehicles," said Carlos Tavares, CEO of Stellantis. "The recent agreement with CTR is an important element of our commitment to customers and the planet in our journey to deliver clean, safe and affordable mobility in North America.

"This major investment by Stellantis in CTR is an outstanding milestone for our company and further strengthens our commitment to sustainable production of electric vehicle batteries," said Rod Colwell, CEO of CTR. "With the rapid spread of electric vehicles in the U.S. and around the World, ensuring the supply of responsibly produced battery materials has never been more important.

CTR is scheduled to begin supplying lithium hydroxide batteries for Stellantis in 2027. The company expects to create 480 jobs through dedicated agreements and up to 940 jobs directly secured by the project fully in operation.

Stellantis' stock is down 0.8 percent at EUR16.54 per share.

By Giuseppe Fabio Ciccomascolo, Alliance News senior reporter

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