Lithium shortages are expected to raise the price of electric vehicles by about $ 1,000, as the cost of the mineral has already risen by 500 percent. As governments and manufacturers demand more EVs, automakers are struggling to ensure the supply of valuable raw materials needed to produce batteries.
However, Stellantis seems to have the opportunity to rest a bit, as the company has secured lithium supplies from Controlled Thermal Resources Ltd (CTR). The CTR works in the Solton Sea, which was discovered in California in 1905 after the Colorado River flooded. Large geothermal lithium deposits are located in the 343-square-mile lake.
CTR is also no stranger to automotive deals, signing a larger contract with General Motors to supply 60,000 tonnes of lithium.
Read: A new plant in Indiana will help prevent EV shortages, says Stellantis
CTR will supply Stellantis with up to 25,000 metric tons of lithium hydroxide per year for a period of 10 years. “Ensuring a reliable, competitive and low-carbon supply of lithium from various partners around the world will allow us to responsibly implement our plans to produce aggressive electric vehicles,” said Carlos Tavares, CEO of Stellantis.
The deal is a key part of the puzzle, as the company plans to offer more than 35 rechargeable electric vehicles in its US portfolio by 2030. Earlier this week, Tavares predicted a battery shortage in 2024 or 2025, and the CEO predicts a shortage of raw materials in the industry in a few years.
The agreement with Samsung SDI to build a battery plant in Indiana was seen as another important step for the company in solving the problems of the power supply chain. The deal, announced earlier this week, highlights Samsung SDI’s production of cells and modules for various Stellantis EVs in North America.