Stellantis seals deals for copper, lithium supply from Argentina

Multinational automaker and supplier Stellantis signed agreements with Canada’s McEwen Mining and Argentina Lithium & Energy to ensure lithium and copper supply for its battery and electric vehicle lines.

Stellantis will invest US$120mn to increase its share in McEwen Copper from 14.2% to 19.4%. The subsidiary owns the Los Azules project in Argentina’s San Juan province.

In February, Stellantis invested US$155mn in the company. Los Azules will produce 175,000t/y of cathode copper with a purity of 99.9% over a useful life of 27 years. The project’s preliminary economic study pegs net present value after taxes at US$2.7bn with a copper price of US$3.75/lb, Stellantis said in a press release.

McEwen vice president Michael Meding told BNamericas that production should start in 2030.

Stellantis also acquired 19.9% of subsidiary Argentina Litio y Energía and will help exploration at the Rincón Oeste, Antofalla Norte, Pocitos and Incahuasi projects. The agreement involves 15,000t/y of lithium between 2028 and 2035, according to a press release by Argentina Lithium & Energy.

Rincón Oeste is the most advanced and adjacent to Rio Tinto's Salar de Rincón and Argosy Minerals' Rincón. Both companies are producing lithium carbonate at demonstration scale.

Stellantis supplies Alfa Romeo, Chrysler, Maserati and others. The company requires stable lithium supply for electromobility batteries, which it produces in the US, and cathodic copper for producing electric vehicles.