Vulcan Energy Resources and Stellantis Partner to Decarbonize Energy Mix at Rüsselsheim Manufacturing Site

Stellantis Stellantis

Vulcan Energy Resources, a geothermal lithium producer, has signed a Binding Term Sheet (BTS) with Stellantis for the initial phase of a multiphase project designed to decarbonize the energy mix of Stellantis’ manufacturing site in Rüsselsheim, Germany, through the development of new geothermal projects.

In June 2022, Stellantis invested €50 million in Vulcan and extended its original binding lithium hydroxide offtake agreement to 2035. As a result of this investment, Stellantis holds an 8% share in Vulcan and is now the second-largest shareholder in the company.

The ZERO CARBON LITHIUM Project, being developed by Vulcan, aims to produce a battery-quality lithium hydroxide chemical product from a combination of geothermal energy and lithium resources, which is Europe’s largest lithium resource, located in Germany.

The Rüsselsheim facility, where Stellantis produces the DS 4 and Opel Astra models, including their electrified versions, is located in the northern area of the Upper Rhine Valley. This facility is also the traditional home of the Opel brand and the German headquarters of Stellantis.

The first phase of the project will include a Pre-Feasibility Study for the construction of geothermal assets for Stellantis’ Rüsselsheim facility, conducted by Vulcan using existing data. If the first phase is successful, the next phase will focus on drilling and more advanced studies and development.

Stellantis aims to secure funding for 50% of the project development following the completion of the first phase.

Material terms of the agreement:

  • Vulcan will carry out a Pre-Feasibility Study for the development of geothermal renewable energy projects in Rüsselsheim as the first phase of the multiphase project.
  • he parties will seek public funding opportunities together to advance the project.
  • Vulcan will still own 100% of its Ried license at the end of the first phase, and the parties will each own 100% of their data and studies.
  • Vulcan will also perform a lithium mineral resource assessment according to the JORC Code (Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves).
  • Stellantis will pay back 50% of VUL’s contributions in the case the project does not go to the next phase.
  • Stellantis will aim to source and provide funding for 50% of the next phase of the project. The business model and project structure for the Project’s development in Phase B onwards will be negotiated based on the results of the first phase.
  • The agreement will continue until validly terminated in the ordinary course, or the event of a “No- go” decision at the end of one of the phases and Vulcan will continue to keep the market updated on developments in relation to the BTS and Project.
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