Stellantis has signed a five-year agreement with lithium producer Vulcan Energy Resources for the sustainable supply of lithium hydroxide used in the EV batteries it makes in Europe.

Vulcan will supply Stellantis with between 81,000 and 99,000 tonnes of lithium hydroxide over the five-year term of the agreement, produced with a reduced environmental impact.

As part of a project it is carrying out in Germany, Vulcan Energy is using geothermal energy to produce battery-quality lithium hydroxide from brine without the use of fossil fuels and minimal water usage. The company said its Zero Carbon Lithium Project aimed to reduce the generation of carbon in the battery metals supply chain. It is also looking to cut carbon from the logistics supporting the supply of materials.