Stellantis accelerates net zero transition with stake in McEwen Copper

Stellantis, a Dutch automaker, will acquire a 14.2% equity stake in McEwen Copper for $155 million, becoming the second largest shareholder along with Rio Tinto.

McEwen Copper is a subsidiary of Canadian mining company McEwen Mining and holds a 100% stake in the Los Azules copper project in San Juan, Argentina and the Elder Creek project in Nevada, US.

The transaction is expected to help Stellantis secure anticipated copper demand beginning in 2027 and achieve carbon net zero by 2038.

The Los Azules copper mine is anticipated 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 accelerates net zero transition with stake in Los Azules copper project owner McEwen Copper. Photo courtesy of Stellantis NV.

Rob McEwen — McEwen Copper Chief Executive said: “Stellantis and McEwen are ideal partners for a large project like Los Azules.

“Together, we share a collective vision to build a mine for the future based on regenerative principles and innovative technologies, that can achieve net-zero carbon emissions by 2038!

“We are committed to delivering green copper to Argentina and the world, a product that will contribute to the electrification of transportation and the protection of our atmosphere.”

The Los Azules copper mine includes an indicated 10.2 billion pounds at a grade of 0.48% Cu and an inferred 19.3 billion pounds at a grade of 0.33% Cu.

Carlos Tavares — Stellantis CEO said: “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.

“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.”

Stellantis anticipates to achieve a 100% passenger car battery electric vehicle (BEV) sales mix in Europe and a 50% passenger car and light-duty truck BEV sales mix in the US by 2030.

The company is targeting approximately 20% low emission vehicle sales mix in Brazil by the end of the decade.

Cathode copper is an important raw material for the production of electric vehicle batteries.