Automaker Stellantis makes a $155 million investment in McEwen Mining's copper project in Argentina
(Kitco News) - Automaker Stellantis (NYSE: STLA) today announced a $155 million investment in a project located in Argentina, which will make a “major contribution” to the company’s plan to become carbon net zero by 2038.
In a press release, the company said it is acquiring a 14.2% equity stake in McEwen Copper, a subsidiary of Canadian mining company McEwen Mining, which owns the Los Azules project in Argentina and the Elder Creek project in Nevada, USA.
With this stake, Stellantis will become McEwen Copper’s second largest shareholder, along with Rio Tinto, through its copper leaching technology venture, Nuton.
The company added that Los Azules plans to produce 100,000 tons per year of cathode copper at 99.9% purity starting in 2027 and the resources can secure the operation for at least 33 years.
“Stellantis intends to lead the industry with the commitment to be carbon net zero by 2038 – a goal that requires innovation and a complete redefinition of the entire business,” said CEO Carlos Tavares. “We are taking important steps in Argentina and Brazil, with the aim of decarbonizing mobility and ensuring strategic supplies of raw materials necessary for the success of the company’s global electrification plans.”
Copper is a strategic raw material for the future of electric mobility, and it is estimated that global demand for the conductive metal will triple in the coming years.
Stellantis said that by making this investment in one of the top 10 international projects in development of this commodity, the company will be able to supply some of the projected copper demand starting in 2027.
Stellantis is one of the world's leading automakers and a mobility provider. Its brands include Abarth, Alfa Romeo, Chrysler, Citroën, Dodge, DS Automobiles, Fiat, Jeep®, Lancia, Maserati, Opel, Peugeot, Ram, Vauxhall, Free2move and Leasys.