Automaker Stellantis NV (BIT:STLA) and Vulcan Energy Resources Ltd (ASX:VUL) are partnering in a multiphase project to develop new geothermal energy capacity for internal consumption at Stellantis’ Mulhouse industrial site in France.
The parties have signed a binding term sheet for the first phase of the project and, based upon current estimates, the planned renewable energy project could start securing a significant portion of the plant’s annual energy needs as of 2026, a statement said on Wednesday.
The project will start with a pre-feasibility study (PFS) for the construction of geothermal renewable energy assets for the facility. The study will be done by Vulcan, which will also assess the possibility of lithium production. If the first phase turns successful, the parties will proceed to more advanced studies and development.
Stellantis’ Mulhouse site is located in the Upper Rhine Valley, at the southernmost extent of Vulcan’s focus area, and houses the production of DS 7, Peugeot 308 and 308 SW, 508 and 508 SW and the new 408 models.
“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,” said Arnaud Deboeuf, Stellantis’ chief manufacturing officer.
Stellantis and Vulcan earlier this year signed a binding term sheet for geothermal energy assets to decarbonise Stellantis’ Ruesselsheim site in Germany.
As for the financing, the automotive manufacturer will seek to secure funding for 50% of the project development and also look for public funding together with its partner. Subject to a successful PFS, Stellantis and Vulcan plan to develop the project jointly on a 50:50 basis.
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