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Automaker Stellantis to become substantial shareholder in lithium developer Vulcan Energy

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(Kitco News) - Lithium developer Vulcan Energy (ASX: VUL) announced today it has agreed a €50 million (A$76 million) equity investment from Stellantis (NYSE: MTA), one of the world's leading automakers.

The company said that Stellantis will become the second largest shareholder in Vulcan, at 8% shareholding, following issue of the fully paid ordinary shares at the 30-day Volume Weighted Average Price (VWAP) of €4.367 (A$6.622) per share which represents ~11.450m shares.

Vulcan added it understands that this represents the world’s first upstream investment in a listed lithium company by an international automaker.

According to the company’s statement, in addition, Vulcan and Stellantis have also extended their binding lithium hydroxide offtake agreement, concluded on 29 November 2021, by five years, to 2035.

Vulcan noted it is aiming to become the world's first lithium producer with net zero greenhouse gas emissions. Its Zero Carbon Lithium™ Project intends to produce a battery-quality lithium hydroxide chemical product from its combined geothermal energy and lithium resource, which is Europe's largest lithium resource, in Germany.

Stellantis is one of the world's leading automakers and a mobility provider. The company's brands include Abarth, Alfa Romeo, Chrysler, Citroën, Dodge, DS Automobiles, Fiat, Jeep®, Lancia, Maserati, Opel, Peugeot, Ram, Vauxhall, Free2move and Leasys.


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