Stellantis Takes On Two Partners To Reduce EV Production Emissions
One of the big criticisms anti-EV people try to level against cleaner vehicles is the environmental costs of production. In many cases, it’s a disingenuous claim to make, because they don’t really care about the environment to begin with, but when raised sincerely, it’s still widely taken out of context. While building EVs can be more carbon intensive than building ICE vehicles, the much lower ongoing emissions after the sale eventually make up for that (and then some).
While this is a good answer, Stellantis apparently doesn’t think that’s good enough. It recently entered into two partnerships that will help it cut down on the carbon emissions associated with building its EVs, making EVs an even more superior choice.
Stellantis & Terrafame Agree On Low-Carbon Nickel Sulphate Supply
Yesterday, Stellantis and Terrafame Ltd. proudly declared that they’re joining forces in a supply agreement for nickel sulphate, which will be used to power electric vehicle (EV) batteries. Starting from 2025, Finland-based Terrafame is slated to provide a substantial amount of regionally sourced nickel by supplying Stellantis with nickel sulphate over the next five years as an integral part of Stellantis’ ambitious electrification plan.
“This agreement is part of the key raw material sourcing to fit with our electrified vehicle battery pack needs,” said Stellantis CEO Carlos Tavares. “We continue to build a new global value chain with Class A partners to support our global strategy and propel our commitment to be the industry champion in climate change mitigation, becoming carbon net zero by 2038, ahead of our competition.”
In order to make mobility cleaner, safer and more accessible to customers, Stellantis has unveiled its Dare Forward 2030 initiative. As part of the strategic plan, they anticipate an all-electric passenger car sales mix in Europe by 2030 as well as a 50% electric vehicle sales mix for cars and light duty trucks across the United States during that same timeframe. To back up their commitment to electrification and software development, Stellantis will invest €30 billion over the next five years with hopes of becoming 30 percent more efficient than industry competitors regarding total expenditures versus revenues.
Terrafame operates an immense battery chemicals plant, supplying EV batteries to the world. With a production process that starts in their own mine and culminates with battery chemicals on-site, Terrafame’s output is entirely traceable. Additionally, due to its advanced technology and processes, Terrafame’s nickel sulphate has one of the lowest carbon footprints in the industry.
“Cooperation with industry leaders such as Stellantis fortifies the position of Terrafame as an important partner of battery chemicals for the European automotive industry,” said Terrafame CEO Joni Lukkaroinen. “In these challenging times, there clearly is a strong demand for sustainably and transparently produced battery chemicals that are made in Europe, for Europe. We are proud to be doing our part in decarbonizing European mobility and increasing the efficiencies of the European automotive industry.”
Vulcan & Stellantis Explore Geothermal Energy to Supply Rüsselsheim Plant
Stellantis and Vulcan Energy Resources Limited have recently penned a binding term sheet for the initial phase of their multi-phase venture to create new geothermal projects, with the goal of decreasing carbon emissions from Stellantis’ Rüsselsheim industrial site in Germany. This location is where both DS4 and Opel Astra are manufactured. If speculations prove true, this could be supplying a large portion of that facility’s energy requirements starting in 2025.
To begin this project, which is situated in the Upper Rhine Valley at its northernmost point, Vulcan will conduct a pre-feasibility study for constructing geothermal assets to serve Stellantis’ facility. If they attain positive results, they will continue with drilling and comprehensive assessments & development stages. To finance half of these operations, both Stellantis and local government are collaborating together.
“This partnership with Vulcan reinforces our commitment to promoting greater clean energy solutions across our enterprise,” said Stellantis CEO Carlos Tavares. “It is one of many actions we’ve taken to drive results, impact, and sustainability in alignment with our Dare Forward 2030 strategic plan.”
Committed to Germany’s Renewable Energy Act (EEG), Stellantis and Vulcan will generate clean electricity for both their own needs as well as sell it onto the grid. Additionally, they will also produce heat which can be used for heating on-site at Stellantis’ manufacturing site.
Stellantis is determined to become a leader in the fight against climate change, striving for carbon neutrality by 2038 and reducing emissions by 50% before 2030. Its partnership with Vulcan Energy represents Stellantis’ first step towards utilizing renewable geothermal energy sources at an industrial site in order to mitigate its environmental footprint while simultaneously keeping resources local.
“Vulcan’s core mission is decarbonization, through renewable energy and carbon neutral, zero fossil fuels lithium supply,” said Vulcan Managing Director and CEO, Dr. Francis Wedin. “Vulcan is here to support Stellantis, our largest lithium customer and one of our major shareholders, to decarbonize its operations in Europe. While we remain focused on our geothermal-lithium developments in the center of the Upper Rhine Valley Brine Field, this project is a complementary opportunity to expand our development pipeline to some of the outer lying areas in the Upper Rhine Valley, supported by industrial partners like Stellantis.”
By forming a partnership with Stellantis, Vulcan exponentially increases its impact on the decarbonization of Europe’s electric vehicle sector. This not only bolsters its Zero Carbon Lithium™ Project but also creates substantial earned value for shareholders.
“I am happy about the partnership of Stellantis and Vulcan Energy announced today,” said Boris Rhein, Minister President of Hesse, Germany. “This is positive news for Hesse, because it shows that in our state climate protection and state-of-the-art industrial production through innovative ideas are perfectly compatible.”
This Could Prove Important For Vehicles With Larger Battery Packs
One of the biggest ways an EV can have larger production emissions is through having a larger battery pack. For most smaller EVs, the time it takes the vehicle’s low emissions to make up for that extra carbon in production is usually just a few years. But, when something like an electric truck has a giant battery, that breakeven time gets pushed out by years.
If Stellantis can get production emissions down, it will be able to build greener large EVs that will be more environmentally justifiable.
Featured image provided by Stellantis and Vulcan.
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