PERTH (miningweekly.com) – ASX-listed Vulcan Energy has inked a binding term sheet with automaker Stellantis for the first phase of a multiphase project, to develop new geothermal projects aimed at decarbonising the energy mix of Stellantis’ Mulhouse industrial site in France.

The Mulhouse plant is home to the DS 7, Peugeot 308 and 308 SW, 508 and 508 SW and the new 408 models, and based on current assumptions, the planned renewable energy project could provide a significant portion of the industrial site’s annual energy needs starting in 2026.

The first phase of the project, located at the southern-most extent of Vulcan’s focus area in the Upper Rhine Valley, will include a prefeasibility study (PFS) for the construction of geothermal renewable energy assets for Stellantis’ facility, undertaken by Vulcan, which will also assess potential for lithium production.

If successful, the next phase will focus on more advanced studies and development. Stellantis will aim to source funding for 50% of the project development, and the parties will seek public funding for the project. Subject to a successful PFS, Stellantis and Vulcan aim to develop the project jointly on a 50:50 basis.

Stellantis and Vulcan will aim to jointly produce clean, renewable energy for internal consumption at Stellantis’ manufacturing site, Vulcan told shareholders on Wednesday.

“Vulcan’s core mission is decarbonisation, through renewable energy and carbon neutral lithium supply,” said Vulcan MD and CEO Dr Francis Wedin.

“Vulcan is here to support Stellantis, our largest lithium customer and one of our major shareholders, to decarbonise its operations in Europe. While we remain focused on execution of our integrated Phase One commercial lithium and renewable energy project, in the centre 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.”

Vulcan in November last year announced that it had started a number of initiatives to expand its geothermal renewable energy and Zero Carbon Lithium business into France and specifically Alsace, which accounts for roughly one-third of the Upper Rhine Graben. The company has applied over the Mulhouse area for an exclusive lithium and geothermal licence to secure another 480 km² of development area within the Upper Rhine Graben Valley Brine Field. According to the term sheet, Vulcan’s team will perform a lithium mineral resource assessment according to the Joint Ore Reserves Committee code.