The maker of Jeep SUVs, Ram pickup trucks and other vehicles on Monday said it has invested $155 million into a copper mining project in Argentina for critical electric-vehicle battery minerals.
Stellantis NV is acquiring a 14.2% equity stake in McEwen Copper, becoming its second largest shareholder behind mining corporation Rio Tinto's Nuton, a copper leaching technology venture. McEwen Copper is a subsidiary of Canada-based McEwen Mining, which owns Los Azules in Argentina and the Elder Creek project in Nevada.
Los Azules is one of the world's largest copper development deposits. It plans to produce 100,000 tons per year of cathode copper at 99.9% purity starting in 2027, supplying some of Stellantis' projected demand starting that year. The resources are projected to make the operation viable for at least 33 years.
"Stellantis intends to lead the industry with the commitment to be carbon net zero by 2038 — a goal that requires innovation and a complete redefinition of the entire business," Stellantis CEO Carlos Tavares said in a statement. "We are taking important steps in Argentina and Brazil, with the aim of decarbonizing mobility and ensuring strategic supplies of raw materials necessary for the success of the Company's global electrification plans."
The extraction of copper will support production of EV batteries globally, including in the United States and Europe, which are aiming for 50% and 100% all-electric sales by 2030, respectively. Stellantis' commitment also underscores the role South America is playing in its strategy. The target is 20% plug-in hybrid and all-electric vehicles sales in Brazil by the end of the decade. Tavares said last week during a roundtable that 100% ethanol flex fuel is playing a large role there under the belief that there is minimal difference in the total carbon emissions between flex fuel vehicles and an electric vehicle, but a significant cost difference.
"We will bring EVs to Brazil," Tavares added, "also to fight against the people that think think that they can destabilize the leader of the market that we are with EVs."
Copper will be a critical material for those powertrains, and global demand of it is expected to triple in the coming years, the company said in a news release.
The mine will use regenerative principles and other technologies to achieve net-zero carbon emissions by 2038, McEwen Copper CEO Rob McEwen said in a statement: "We are committed to delivering green copper to Argentina and the world, a product that will contribute to the electrification of transportation and the protection of our atmosphere."
