Colwell’s Brisbane-based Controlled Thermal Resources signed the binding offtake deal with Stellantis NV for its battery needs in north America. Stellantis produces a huge number of brands including Jeep. Stellantis is a merger between Fiat Chrysler and France’s PSA Group.

The Netherlands-based Stellantis has a goal of producing 5 million electric vehicles worldwide by 2030. It is investing $US35 billion into electrification and software and has forecast it would have 25 all-electric brands in the US by 2030.

Colwell’s project will recover the lithium from geothermal brines using renewable energy and steam to produce the battery grade product. The process cuts out the need for brine ponds, open pit mines or the use of any fossil fuels in production.

CTR has a production capacity of more than 300,000 tonnes a year.

There were no financial details about the deal.

Colwell’s company had previously struck a deal with General Motors for lithium supply and late last year Stellantis signed up with Australia’s Vulcan Resources for lithium supply for its European production.

Colwell described the deal as definitive and claimed it would set a benchmark for the automotive industry in the US.

“Securing clean lithium produced with energy from a renewable resource helps to further decarbonise the battery supply chain which, in turn, delivers clean cars with less environmental impact,” Colwell said.

“We look forward to a strong and successful relationship with Stellantis.”

Stellantis chief executive Carlos Tavares said the deal would help in the fight against climate change and bolster the company’s EV supply chain.

“Ensuring we have a robust, competitive and low carbon lithium supply from various partners around the world will enable us to meet our aggressive electric vehicle production plans in a responsible manner,” he said.