Stellantis, Vulcan Energy join forces for geothermal energy project in France

Stellantis N.V. and Vulcan Energy Resources have signed a binding term sheet for the first phase of a multiphase project that aims to develop new geothermal projects at the Dutch automotive company’s Mulhouse industrial site in France.

The Mulhouse industrial site is home to several automobile models, including the DS 7, Peugeot 308 and 308 SW, 508 and 508 SW, and the new 408 models.

The planned renewable energy project, based on current assumptions, has the potential to meet a substantial portion of the industrial site’s annual energy needs starting in 2026.

The initial phase of the geothermal project will be carried out by Vulcan Energy Resources and will include a Pre-Feasibility Study (PFS) for the construction of geothermal renewable energy assets. This phase will also assess the potential for lithium production. If the PFS proves successful, subsequent phases will focus on advanced studies and development.

To fund the geothermal power project, Stellantis aims to secure 50% of the project development funding, while both companies will seek public funding. The ultimate goal is for Stellantis and Vulcan Energy Resources to jointly develop the project on a 50:50 basis, with the aim of producing clean and renewable energy for internal consumption at the Dutch firm’s manufacturing site.

Vulcan Energy Resources has been actively expanding its geothermal renewable energy and Zero Carbon Lithium business into France, particularly in the Alsace region, which represents a significant portion of the Upper Rhine Graben. In order to secure further development area within the Upper Rhine Graben Valley Brine Field, Vulcan has applied for an exclusive lithium and geothermal license over the Mulhouse area, covering an additional 480 km².

The company’s Zero Carbon Lithium project aligns with the establishment of the “French Mineral Resources Observatory,” which analyzes critical raw materials resources in France and provides recommendations for public investment. The observatory will receive support from the newly announced 2 billion euro “French Critical Raw Materials Fund.”

Dr Francis Wedin — Vulcan Energy Resources managing director and CEO said: “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 the execution of our integrated Phase One commercial lithium and renewable energy project, in the center of the Upper Rhine Valley Brine Field, this project is a complementary opportunity to expand our future development pipeline into the French region of the Upper Rhine Valley, supported by industrial partners like Stellantis.”

Stellantis has a comprehensive approach to decarbonization and is committed to becoming a carbon net-zero corporation, encompassing all scopes, by 2038.

This agreement with Vulcan Energy Resources represents the company’s second potential utilization of renewable geothermal energy to decarbonize and localize its energy supply at an industrial site. It further strengthens Vulcan Energy Resources’ contribution to decarbonizing the European electric vehicle industry, complementing the carbon avoidance from its Zero Carbon Lithium Project and generating shareholder value.

Arnaud Deboeuf — Stellantis Chief Manufacturing Officer said: “We are proud to announce another step in our partnership with Vulcan, which demonstrates our commitment to increase the use of decarbonized energy solutions across our facilities.

“Geothermal is one of many solutions we explore to achieve our sustainability goals in alignment with our Dare Forward 2030 strategic plan.”