US-European auto giant Stellantis, whose brands include Jeep, Fiat and Peugeot, said Thursday that it was investing more than $100 million to buy US lithium, essential for producing electric vehicle batteries.
Under the deal, US-based Controlled Thermal Resources will supply the carmaker with up to 65,000 tons of lithium hydroxide monohydrate a year for 10 years from 2027.
It hikes an original supply agreement, signed last year, for up to 25,000 tons per year, Stellantis said in a statement.
The supply of American lithium means electric vehicles (EV) produced by Stellantis will be eligible for consumer incentives under a landmark climate action plan signed into law in the United States last year.
The Inflation Reduction Act (IRA) directs some $370 billion in subsidies towards America's energy transition, including tax breaks for US-made electric vehicles and batteries.
The law stipulates that in order to qualify for a consumer incentive of $3,750, 40 percent of critical minerals in an eligible EV battery needs to be extracted from, or processed in, countries that have free-trade agreements with the United States.
The figure is set to rise to 80 percent in 2027.
The lithium sold by Controlled Thermal Resources will be extracted from geothermal brines at its site in California known as Hell's Kitchen using renewable energy and steam, the statement said.
In Europe, Stellantis has teamed up with Australia's Vulcan Energy for two lithium extraction projects, in Germany and France's Alsace region.
The company plans to have electric cars account for all of its sales in Europe and 50 percent of its sales in the United States by the end of the decade.
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Stellantis
Artificial Intelligence Analysis
Defense Industry Analyst:
8/10
This article is relevant to defense industry analysts because it highlights the importance of lithium for producing electric vehicle batteries, which is of growing importance in the defense industry. The article also discusses the Inflation Reduction Act (IRA) and its implications for electric vehicle subsidies, which is highly relevant to analysts in the defense industry. Furthermore, the article discusses Stellantis partnerships with Vulcan Energy for two lithium extraction projects in Germany and France, which is significant for defense industry analysts.
Stock Market Analyst:
7/10
This article is relevant to stock market analysts because it discusses the $100 million investment made by Stellantis in US lithium for electric vehicles. This investment could have a significant impact on Stellantis stock price, as well as the stock prices of other companies in the industry. Furthermore, the article discusses the Inflation Reduction Act (IRA) and its potential effects on electric vehicle subsidies, which could have an impact on the stock market.
General Industry Analyst:
8/10
This article is relevant to general industry analysts because it discusses Stellantis investment in US lithium for electric vehicles and its implications for the industry. This investment could have a significant impact on the industry as a whole, and on the production of electric vehicles in particular. The article also discusses the Inflation Reduction Act (IRA) and its implications for electric vehicle subsidies, which could have an impact on the industry.
Analyst Summary
: Jeep owner Stellantis recently announced a $100 million investment in US lithium for electric vehicles. This investment is significant for the defense, stock market, and general industry analysts, as it could have a significant impact on the production and sales of electric vehicles, as well as the stock prices of companies in the industry. The article also discusses the Inflation Reduction Act (IRA) and its implications for electric vehicle subsidies, which could have an impact on the industry. Additionally, Stellantis has partnered with Vulcan Energy for two lithium extraction projects in Germany and France, which is significant for defense industry analysts. Over the past 25 years, there have been a number of significant events and trends in the space and defense industry. One of the most significant trends has been the increasing demand for electric vehicles. This demand has led to an increased demand for lithium, which is used to produce electric vehicle batteries. Stellantis investment in US lithium is in line with this trend, and could have a significant effect on the industry.Investigative
Question:
- 1. What is the potential impact of Stellantis investment in US lithium on the space and defense industry?
- 2. How does the Inflation Reduction Act (IRA) affect the production and sale of electric vehicles?
- 3.
What are the implications of Stellantis partnerships with Vulcan Energy for lithium extraction projects in Germany and France?4. How have other significant events and trends in the space and defense industry over the past 25 years impacted the production and sale of electric vehicles?
5. What strategies can Stellantis and other companies in the industry use to maximize the benefits of their investments in US lithium for electric vehicles?
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