ASX Green Energy Stocks: Vulcan inks 2nd lithium supply deal, and Nestlé goes 100pc renewable
Link copied to
Short-seller target Vulcan Energy (ASX:VUL) has signed another lithium hydroxide offtake agreement (its second in a week) — this time with multinational automotive manufacturer, Stellantis.
The company said that starting from 2026, Vulcan (ASX:VUL) will supply a minimum of 81,000 tonnes and a maximum of 99,000 tonnes of battery grade lithium hydroxide over the duration of the initial five year agreement.
The battery grade lithium hydroxide will be used by the three Stellantis battery production facilities in Europe – in Termoli, Italy, and the Automotive Cells Company (ACC) joint venture plants in Kaiserslautern, Germany, and Douvrin, France.
These three plants combined will produce at least 120 gigawatt hours of cell capacity by 2030. Shares in Vulcan edged higher by ~2% in morning trade to $10.46.
Managing director Dr Francis Wedin said the definitive offtake agreement with Stellantis aligns with Vulcan’s mission to decarbonise the lithium-ion battery and electric vehicle supply chain.
With its zero-carbon lithium project, VUL “also intends to reduce the transport distance of lithium chemicals into Europe, and our location in Germany, proximal to Stellantis’ European gigafactories, is consistent with this strategy”, Wedin said.
The Stellantis electrification strategy includes ensuring a sustainable supply of lithium, which it has identified as a critical battery raw material regarding availability.
By 2030, more than 70% of Stellantis’ European sales and more than 40% of its U.S. sales will be low emission vehicles (LEVs).
Stellantis’ plans call for a total of five battery cell manufacturing plants in Europe, including Germany, and the United States, with a total capacity of 260 gigawatt hours (GWh).
Stellantis chief purchasing and supply chain officer Michelle Wen said: “This agreement is further proof that we have the competitive spirit to deliver on our commitments.”
“Safe, clean and affordable freedom of mobility represents a strong expectation of our societies, and we are committed to deliver on that matter.”
Today’s offtake agreement follows a deal signed with Renault on November 22 for between 26,000 to 32,000 metric tonnes of battery grade lithium chemicals over a six year term, allowing Renault to avoid between 300 to 700kg of CO2 equivalent emitted for a 50-kwh battery.
Food and beverage giant Nestlé Australia have signed a power purchase deal that will see it switch to 100% renewable electricity.
The power purchase agreement (PPA) with CWP Renewables will source clean electricity from CWP’s Renewables’ Sapphire and Crudine Ridge wind farms in New South Wales and is the equivalent of enough electricity to power 19,000 households annually.
It will also see the company avoid around 73,000 tonnes of carbon emissions each year.
The 10-year agreement covers all of the electricity used across Nestlé’s sites each year and includes six factories, two distribution centres, three corporate offices, 20 retail boutiques, and laboratory.
CWP CEO Jason through this PPA, Nestlé will also be supporting regional investment with both the Crudine and Sapphire wind farms providing around 20 local operations jobs and around $8.55m in community benefit throughout the life of the farms.