Stellantis will partner with Lithium Group’s Vulcan Energy Resources to develop a geothermal energy project in Germany to help decarbonize car production in Ruesselsheim, the automaker said in a statement.
Stellantis’ Ruesselsheim facility is where the automaker produces DS 4 and Opel Astra models.
“Stellaantis and Vulcan aim to generate clean electricity and supply it to the grid for both internal and external consumption in accordance with the German Renewable Energy Act (EEG). It also generates heat that is transferred to both companies.
The war in Ukraine is tightening Europe’s energy supply, creating uncertainty for manufacturers already struggling with supply chain strains for raw materials and components such as semiconductors.
Based in Australia, Vulcan will initially conduct pre-feasibility studies for the development of energy projects.
Stellantis, which holds an 8% stake in Vulcan, aims to finance 50% of the project’s development.
Stellantis CEO Carlos Tavares said the partnership with Vulcan reinforces the group’s commitment to expanding access to clean energy.
“This is one of many actions we have taken to promote results, impact and sustainability,” he said.
The automaker has already signed a contract with Vulcan to supply lithium from a miner’s project in Germany’s Upper Rhine Valley.
Stellantis last week expanded its network of direct EV battery raw material suppliers, signing a contract for manganese sulfite with Australian mining company Element.
The company previously announced agreements with GME Resources for nickel and cobalt sulfate and US-based Controlled Thermal Resources for lithium hydroxide.
Stellantis wants battery electric vehicles to make up 100% of passenger car sales in Europe and 50% of passenger car and light truck sales in the US by 2030.