(Reuters) -Australia-listed Vulcan Energy Resources Ltd signed an agreement with Stellantis NV on Wednesday, aiming to decarbonise the energy supply for the automaker’s European operations.
The binding term sheet is for the first of a multi-phase project to develop new geothermal projects aimed at decarbonising the energy mix of Stellantis’ Mulhouse industrial site in France, the lithium producer said in a statement.
The first phase will include a study for the construction of geothermal renewable energy assets for Stellantis’ facility, as well as assess potential for lithium production.
Based on current assumptions, the planned renewable energy project could provide a significant portion of Mulhouse site’s annual energy needs starting in 2026, Vulcan said.
Stellantis, the second-largest shareholder in Vulcan Energy, will aim to source funding for 50% of the project development, and the parties will seek public funds for the project.
The world’s No. 3 carmaker by sales has signed deals with multiple miners to secure battery minerals.
Stellantis had teamed up with Vulcan Energy to develop geothermal energy projects in Germany to help decarbonise production of electric vehicles at Rüsselsheim.
(Reporting by Echha Jain in Bengaluru; Editing by Shilpi Majumdar and Sherry Jacob-Phillips)
