Jeep maker Stellantis NV is investing nearly $53 million (50 million euro) into its European lithium partner in an effort to create a reliable supply chain of the critical mineral for electric-vehicle batteries.
The equity investment in Vulcan Energy Resources Ltd. makes the automaker Vulcan's second largest shareholder with 8% ownership. The deal also extends its agreement announced in November with the Australia-based miner to 10 years from five. This comes after Stellantis CEO Carlos Tavares has warned about the potential for battery shortages later this decade as global productions of EVs grows.
"Making this highly strategic investment in a leading lithium company will help us create a resilient and sustainable value chain for our European electric vehicle battery production," Tavares said in a statement. "We continue our quest of forming strong relationships with partners who share our values as we collectively fight against global warming and provide clean, safe and affordable mobility to our customers."
