Jeep maker Stellantis NV has signed a binding agreement with a lithium hydroxide supplier to provide the mineral for North American electrified vehicle production, the automaker said on Thursday, just as its CEO warns about possible battery shortages in the future.
Australia-based Controlled Thermal Resources Ltd. will supply up to almost 28,000 tons (25,000 metric tons) of lithium hydroxide per year over the 10-year term of the agreement from the Hell's Kitchen Project in California's Imperial County off the Salton Sea. It's expected to begin producing in 2024. A single battery typically uses a few grams of the mineral, which is largely sourced from China today and whose price has increased in recent years. No details were provided on the financial terms of the agreement.
The deal comes after Stellantis CEO Carlos Tavares last week warned about the possibility of an EV battery shortage come 2024 or 2025 ahead of more battery plants coming online and then a shortage in 2027 or 2028 of raw materials to support those plants.
