Stellantis invests $155M in copper miner

In a surprising move, automotive multinational Stellantis has announced the acquisition of a 14.2% equity stake in McEwen Copper, a subsidiary of McEwen Mining, becoming the Canadian company's second-largest shareholder.

This is an insightful move in Stellantis' sweeping decarbonization plan, placing the company over an aspect of its own strategic metal production as well as complementing its commitment to becoming a sustainable mobility tech provider.

The industry leader's $155 million investment cements a partnership in the Los Azules copper project located in the San Juan province of Argentina, where McEwen Copper holds a 100% interest.

Stellantis possesses a globally diverse portfolio of 14 iconic brands, including Dodge, Jeep, Chrysler, Citroën, Alfa Romeo, Fiat, Maserati and Opel.

The global automaker's entry into McEwen Copper's shareholder register represents the first major investment by a carmaker in a copper mining operation, according to CEO Rob McEwen.

"Stellantis and McEwen are ideal partners for a large project like Los Azules," says McEwen. "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."

This is yet another demonstration of how expeditiously the automotive industry is moving to lock in crucial supplies for electric vehicle manufacturing. The venture comes on the heels of similar resource acquisitions like General Motors striking a $650 million deal with Lithium Americas in January to develop a top U.S. lithium deposit, as well as bidding for a minority stake in Vale's base metals unit in Brazil, and as Tesla considers a buyout of the Canadian battery-metals mining startup Sigma Lithium.

Copper to wire Stellantis EVs

Los Azules is a large porphyry copper deposit with significant growth potential, currently ranked in the top 10 largest undeveloped copper deposit projects in the world by Mining Intelligence (2022). The mine is expected to produce 99.9% purity cathode copper, turning out 100,000 tons per year, with projected resources securing the operation for the next 33 years, minimally.

"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," said Carlos Tavares, Stellantis CEO. "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."

According to the project's 2017 Preliminary Economic Assessment, during the first 10 of a 36-year projected lifetime of operations, Los Azules anticipates being the world's 25th largest copper producer with an average of 415 million pounds of the energy metal annually.

Once production starts in 2027, the project will be positioned as a source of cathode copper, helping to supply worldwide demand, which is expected to triple by 2035. Projections are being driven in large part by an exponential increase in copper-intensive technologies such as EVs, charging infrastructure, and energy storage for renewables like wind and solar.

Having a stake in McEwen Copper and its Los Azules project will help ensure Stellantis' plans to offer more than 75 battery-electric vehicle models, representing 100% of their European automotive sales and 50% of sales in the U.S., by 2030.

Decarbonization is the fundamental driving force in creating new technologies with the potential of leading to long-term sustainable growth and profitability. Stellantis' proposed circular economy industry operation model also anticipates leaner processes, waste reduction and greater manufacturing efficiency.

In spite of the sweeping scope of these ambitions, Stellantis maintains that its drive is to be diverse and community-rooted – the greatest sustainable mobility tech company, rather than the largest.