Investment to secure forecast copper demand
Stellantis recently announced an investment in a copper mine project in Argentina. According to its press release, the automotive group intends to secure at least part of its future copper requirements in this way.
To this end, Stellantis is acquiring a 14.2 percent stake in McEwen Copper, a subsidiary of the Canadian mining company McEwen Mining. The group owns the Los Azules mine project in Argentina and the Elder Creek mine project in Nevada (USA).
In its press release, Stellantis mentions an investment sum of 155 million dollars. With this investment, the automotive group becomes the second largest shareholder of McEwen Copper.
Sustainable copper mine
The Los Azules project, located in Argentina, is a sustainable copper mine, according to Stellantis’ press release.
Los Azules plans to produce 100,000 tons of cathode copper annually with a purity of 99.9 percent starting in 2027. The resources could sustain operations for at least 33 years.
Rob McEwen, CEO of McEwen Copper, said, “Stellantis and McEwen are the ideal partners for a large project like Los Azules. Together, we have a vision to build a mine for the future based on renewable principles and innovative technologies that can achieve net-zero CO2 emissions by 2038.” There will be a commitment to provide Argentina and the world, so-called green copper, he said. This, he said, is a product that will contribute to the electrification of transport and the protection of the atmosphere.
Copper: strategic raw material
As Stellantis writes, copper is a strategic raw material for the future of electromobility. At the same time, the automaker mentions that according to estimates, global demand for the conductive metal will triple in the coming years.
According to Stellantis, the investment mentioned is one in one of the ten most important international projects for the development of copper. Thanks to it, Stellantis will be able to meet part of the projected copper demand from 2027 onwards, he added.
“Stellantis is committed to achieving net zero CO2 emissions by 2038, leading the industry – a goal that requires innovation and a complete rethink in all areas of the business,” said Stellantis CEO Carlos Tavares. “We are taking important steps in Argentina and Brazil with the goal of decarbonizing mobility and securing the strategic supply of raw materials necessary for the success of the company’s global electrification goals.”