Stellantis and Vulcan Energy resources join forces for geothermal projects in France: Report

Automaker Stellantis has entered into a new agreement with Australian lithium supplier Vulcan Energy Resources in a move to decarbonize its operations in Europe, according to a joint statement released by the two companies on Wednesday.

With the growing global demand for electric vehicle (EV) batteries, Stellantis has been securing key minerals by signing deals with various miners. Vulcan Energy Resources is now the second-largest investor for the world’s third-largest carmaker by sales.

The binding agreement announced focuses on the first phase of a project aimed at developing new geothermal sources to contribute to the energy supply of an industrial site located in Mulhouse, eastern France. The Mulhouse facility is where Stellantis manufactures several Peugeot and DS models, including the fully-electric Peugeot e-308.

No specific financial details regarding the agreement were disclosed.

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This collaboration follows a similar deal earlier this year between Stellantis and Vulcan, where they partnered to develop geothermal energy projects to support EV production at Stellantis’ Rüsselsheim facility in Germany.

Stellantis’ Chief Manufacturing Officer, Arnaud Deboeuf, stated that geothermal energy is one of the many solutions the company is exploring to achieve its carbon net-zero goal by 2038.

The first phase of the project, situated in Vulcan’s targeted area in the Upper Rhine Valley, will involve conducting a study for the construction of geothermal renewable energy assets for the Mulhouse facility. Additionally, the project will assess the potential for lithium production.

Based on current assumptions, the planned renewable energy project is expected to fulfill a “significant portion” of the site’s annual energy requirements starting from 2026, as stated by the companies.

Stellantis and Vulcan intend to jointly fund the project development on a 50-50 basis. They also plan to seek public funds in France to support the initiative.