Renault Group and Vulcan Energy, a global lithium developer, have signed a lithium offtake term sheet (an arrangement between a producer and a buyer to purchase portions of the producer’s upcoming supply of materials). The agreement is for an initial five-year term, which can be extended if mutually agreed, with a start of commercial delivery set for 2026. Under the agreement, Renault will purchase 6,000-17,000 tons of battery-grade lithium chemicals per year, produced in Germany by Vulcan Energy.
Renault hopes to achieve carbon neutrality in 2050, with up to 90% battery-electric vehicles in its sales mix by 2030. Thanks to Vulcan Energy, which will produce a battery-quality lithium chemical product from its combined geothermal energy and lithium resource, with a lower carbon impact than many current suppliers, Renault claims it will be able to avoid 300-700kg of CO2 emissions for a 50kWh battery.