Short-selling target Vulcan Energy (ASX: VUL) signed another lithium hydroxide drawdown agreement (its second in a week) – this time with multinational automaker Stellantis.
The company said that from 2026, Vulcan (ASX: VUL) will supply a minimum of 81,000 tonnes and a maximum of 99,000 tonnes of battery-grade lithium hydroxide over the term of the original five-year agreement. .
Battery grade lithium hydroxide will be used by the three Stellantis battery production plants in Europe – in Termoli, Italy, and the Automotive Cells Company (ACC) joint venture plants in Kaiserslautern, Germany, and Douvrin, in France.
Those three plants combined will produce at least 120 gigawatt hours of cellular capacity by 2030. Vulcan shares edged up about 2% in morning trading to $ 10.46.
Over 70% of Stellantis’ European sales will be LEVs
Chief Executive Officer Dr Francis Wedin said the definitive drawdown agreement with Stellantis aligns with Vulcan’s mission to decarbonize the lithium-ion battery and electric vehicle supply chain.
With its zero-carbon lithium project, VUL “also intends to reduce the transport distance of lithium chemicals to Europe, and our location in Germany, close to Stellantis’ European giga-factories, complies with this strategy, ”Wedin said.
Stellantis’ electrification strategy includes ensuring a sustainable supply of lithium, which it has identified as a critical battery feedstock in terms of availability.
By 2030, more than 70% of Stellantis’ European sales and more than 40% of its US sales will be low emission vehicles (LEVs).
Plans in place for five battery cell manufacturing plants in the EU
Stellantis plans call for a total of five battery cell manufacturing plants in Europe, including Germany and the United States, with a total capacity of 260 gigawatt hours (GWh).
Michelle Wen, Director of Purchasing and Supply Chain, Stellantis, said: “This agreement is further proof that we are competitive to deliver on our commitments.
“Safe, clean and affordable freedom of mobility is a strong expectation of our societies, and we are committed to meeting them. “
Today’s levy agreement follows an agreement signed with Renault on November 22 for 26,000 to 32,000 metric tonnes of battery-grade lithium chemicals over a six-year period, allowing Renault to avoid between 300 and 700 kg of CO2 equivalent emitted for a 50 kWh battery.
Nestlé switches to 100% renewable energy
Food and beverage giant Nestlé Australia has signed a power purchase agreement that will see it switch to 100% renewable electricity.
Power Purchase Agreement (PPA) with CWP Renewables will provide clean electricity from CWP’s Sapphire and Crudine Ridge wind farms in New South Wales and is equivalent to enough electricity to power 19,000 homes per year.
It will also allow the company to avoid around 73,000 tonnes of carbon emissions each year.
The 10-year agreement covers all electricity used at Nestlé sites each year and includes six factories, two distribution centers, three head offices, 20 retail stores and a laboratory.
Jason, CEO of CWP, through this PPA, Nestlé will also support regional investments with the Crudine and Sapphire wind farms, providing approximately 20 local jobs and approximately $ 8.55 million in community benefits throughout the lifespan of the parks.