Automotive group Stellantis is making an investment in Argentina Lithium, partnering with the TSX-V-listed mining company to advance a lithium project in the South American nation.
Stallantis subsidiary Peugeot Citroen Argentina will make a $90-million investment in Argentina Litio y Energia (ALE), Argentina Lithium & Energy announced on Wednesday.
Stellantis will own 19.9% of the issued and outstanding shares of ALE, while Argentina Lithium will own the balance. Stellantis has been granted the right to exchange all the ALE shares for up to 19.9% of the outstanding shares of Argentina Lithium.
The companies will also enter into a lithium offtake agreement, under which ALE will sell to Stellantis up to 15 000 t/y of lithium over a seven-year period. After the initial seven years, the offtake agreement may be extended.
“We are delighted to have Stellantis as a partner in the future development of our lithium projects in Argentina. Together, we share a vision to build a sustainable lithium mining operation for the future. We look forward to a strong and successful relationship with Stellantis and we are committed to delivering a sustainable lithium product that will contribute to the electrification of transportation and the protection of our atmosphere,” commented Argentina Lithium president and CEO Nikolas Cacos.