We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Stellantis (STLA) Invests $100M in CTR's Hell's Kitchen Project
Read MoreHide Full Article
Stellantis N.V. (STLA - Free Report) and Controlled Thermal Resource Holdings Inc. (CTR) announced an investment of $100 million from Stellantis for developing the latter’s Hell’s Kitchen project. This is the world’s largest geothermal lithium project, with a production capacity of up to 300,000 metric tons of lithium carbonate equivalent each year. Lithium acquired from the project will support Stellantis’ battery electric vehicle (BEV) eligibility for consumer incentives under the U.S. Inflation Reduction Act.
The initial supply agreement has been expanded and now requires CTR to supply up to 65,000 metric tons of battery-grade lithium hydroxide monohydrate (LHM) each year over a 10-year contract term. The new agreement includes the original supply agreement signed by both companies in June 2022 that required CTR to supply 25,000 metric tons of LHM each year.
The project, located in California’s Imperial County, will recover lithium from geothermal brines using renewable energy and steam to produce battery-grade lithium products in a fully integrated process, eliminating the need for evaporation brine ponds, open pit mines and fossil-fueled lithium processing.
By 2025, Stellantis plans to invest a total of EUR 30 billion in electrification technology to provide best-in-class BEVs to its customers.
As part of the Dare Forward 2030 plan, Stellantis aims to achieve 100% electric vehicle sales mix in Europe and a 50% passenger car and light-duty truck BEV sales mix in the United States by the end of the decade. To achieve this sales target, Stellantis is securing approximately 400 GWh of battery capacity, supported by six battery manufacturing plants in North America and Europe. All these investments will help the automotive manufacturer reduce half of its carbon footprint by 2030 compared with 2021 and achieve carbon net zero by 2038.
CTR will start supplying battery-grade LHM to Stellantis in 2027.
The Zacks Consensus Estimate for OSK’s 2023 sales and earnings implies year-over-year growth of 15% and 120.2%, respectively. The EPS estimate for 2023 has moved north by $1.52 in the past 30 days. The 2024 EPS estimate has moved up by $1.43 in the past 30 days.
The Zacks Consensus Estimate for ALSN’s 2023 sales and earnings implies a year-over-year increase of 9.4% and 25.3%, respectively. The EPS estimate for 2023 has moved up by 7 cents in the past seven days. The 2024 EPS estimate has moved north by 8 cents in the past seven days.
The Zacks Consensus Estimate for GNTX’s 2023 sales and earnings implies year-over-year growth of 17.3% and 29.4%, respectively. The EPS estimate for 2023 has moved up by 2 cents in the past seven days. The 2024 EPS estimate has moved north by 3 cents in the past seven days.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Stellantis (STLA) Invests $100M in CTR's Hell's Kitchen Project
Stellantis N.V. (STLA - Free Report) and Controlled Thermal Resource Holdings Inc. (CTR) announced an investment of $100 million from Stellantis for developing the latter’s Hell’s Kitchen project. This is the world’s largest geothermal lithium project, with a production capacity of up to 300,000 metric tons of lithium carbonate equivalent each year. Lithium acquired from the project will support Stellantis’ battery electric vehicle (BEV) eligibility for consumer incentives under the U.S. Inflation Reduction Act.
The initial supply agreement has been expanded and now requires CTR to supply up to 65,000 metric tons of battery-grade lithium hydroxide monohydrate (LHM) each year over a 10-year contract term. The new agreement includes the original supply agreement signed by both companies in June 2022 that required CTR to supply 25,000 metric tons of LHM each year.
The project, located in California’s Imperial County, will recover lithium from geothermal brines using renewable energy and steam to produce battery-grade lithium products in a fully integrated process, eliminating the need for evaporation brine ponds, open pit mines and fossil-fueled lithium processing.
By 2025, Stellantis plans to invest a total of EUR 30 billion in electrification technology to provide best-in-class BEVs to its customers.
As part of the Dare Forward 2030 plan, Stellantis aims to achieve 100% electric vehicle sales mix in Europe and a 50% passenger car and light-duty truck BEV sales mix in the United States by the end of the decade. To achieve this sales target, Stellantis is securing approximately 400 GWh of battery capacity, supported by six battery manufacturing plants in North America and Europe. All these investments will help the automotive manufacturer reduce half of its carbon footprint by 2030 compared with 2021 and achieve carbon net zero by 2038.
CTR will start supplying battery-grade LHM to Stellantis in 2027.
Zacks Rank & Other Key Picks
STLA currently carries a Zacks Rank #2 (Buy).
Some other top-ranked players in the auto space include Oshkosh Corporation (OSK - Free Report) , Allison Transmission Holdings, Inc. (ALSN - Free Report) and Gentex Corporation (GNTX - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for OSK’s 2023 sales and earnings implies year-over-year growth of 15% and 120.2%, respectively. The EPS estimate for 2023 has moved north by $1.52 in the past 30 days. The 2024 EPS estimate has moved up by $1.43 in the past 30 days.
The Zacks Consensus Estimate for ALSN’s 2023 sales and earnings implies a year-over-year increase of 9.4% and 25.3%, respectively. The EPS estimate for 2023 has moved up by 7 cents in the past seven days. The 2024 EPS estimate has moved north by 8 cents in the past seven days.
The Zacks Consensus Estimate for GNTX’s 2023 sales and earnings implies year-over-year growth of 17.3% and 29.4%, respectively. The EPS estimate for 2023 has moved up by 2 cents in the past seven days. The 2024 EPS estimate has moved north by 3 cents in the past seven days.