Electric mobility: Stellantis invests $155 million in copper mining – 02/27/2023 at 18:22

(AOF) – Stellantis announces an investment of 155 million dollars in a mining project located in Argentina, which the group presents as “a major step towards achieving carbon neutrality by 2038”. The builder is acquiring a 14.2% stake in the capital of McEwen Copper, a subsidiary of the Canadian company McEwen Mining, behind the Los Azules projects in Argentina and Elder Creek in the United States. Copper is a “strategic raw material for the future of electric mobility”, recalls Stellantis.

“Stellantis has the ambition to become the champion of the sector by achieving carbon neutrality by 2038, a goal that requires innovating and completely redefining our activities,” said CEO Carlos Tavares. It is about “offering carbon-free mobility” and “guaranteeing a strategic supply of the raw materials necessary for the success of our company’s global electrification strategy”.

With this stake, Stellantis will become McEwen Copper’s second largest shareholder after Rio Tinto. The Los Azules mine project plans to produce 100,000 tons of copper cathode each year with a purity of 99.9% from 2027, and given the resources identified, the site could be exploited for at least 33 years.


Key points

– Sixth largest automotive group in the world – 3rd in the United States with 11% market share and 2nd in Europe with 20%, born in January 2021 from the Peugeot-Fiat Chrysler Group merger;

– Turnover of €162 billion achieved under 14 brands – Alfa Romeo, Chrysler Citroën, DS, Jeep, Opel, Peugeot, etc. -, mainly in North and South America and in Europe;

– Business model adapting the group to the new uses of motorists and the electrification of vehicles via digital transformation, the internal culture of performance (high industrial competitiveness) and social responsibility;

– Capital with 4 main shareholders: the holding company of the Agnelli Exor family for 14.4%, the Peugeot family for 7.2%, the Chinese Dongfeng for 5.6% and BPI France for 5.66%, John Elkann chairing the board of directors of 11 members and Carlos Tavares being managing director;

– Sound financial position: €59.7 billion in available industrial liquidity and €56 billion in equity, against a debt of €34 billion.


– “Dare forward 2030” strategic plan:

– maintenance of a balance point at less than 50% of invoicing and operating margins at more than 2 digits,

– doubling of revenues including a quadrupling in the high end, ¼ achieved outside Europe and North America (€20 billion in China) and 1/3 from online sales,

– from 2024, $5 billion in cash from synergies;

– Innovation strategy:

– increase in battery capacity to 400 GWh,

– combination of fuel cells/hydrogen for large utilities,

– new venture capital fund of €300 million for advanced technologies,

– collaborative ecosystem, with more than 160 co-financed projects and more than 1,000 partners involved in autonomous driving, connectivity, manufacturing, electrification technologies and cutting-edge propulsion,

– academies in digital & data and electricity;

– Environmental strategy of carbon neutrality in 2038 via a 50% reduction in 2030:

– 100% electric vehicles in Europe and 50% in the United States;

– new circular economy division – purchase of reconditioner Stimcar, launch of regional circular hubs from 2023, SUSTAINera label – aiming for €2 billion in revenue by 2030,

– electrification and software plans with €30 billion in investments by 2025;

– Integration of the Share now specialist -5 million customers worldwide;

– Securing the battery ecosystem by 5 giga-companies in Europe and North America, by partnerships and by strengthening the supply of lithium hydroxide and CoolSIC chips from Infineon.


– Shortages of semiconductors until the end of 2023;

– Execution of synergies –€3.2 billion in net cash in 2021 out of €5 billion expected in 2024;

– Advances in financing activities in the United States and Europe, with high profitability;

– Increase in the operating margin of European activities;

– After a 29% increase in revenues in the 3rd quarter, confirmation of the 2022 objective of a double-digit operating margin and positive free cash flow.

A paradoxical performance

Data from EY highlights that the performance of the world’s top 16 manufacturers was particularly strong in 2021. While the average margin has fallen for three years in a row, from 6.3% in 2017 to just 3.5% in 2020 , this margin stood at 8.5% in 2021. This level is a record for ten years. However, the context was particularly hectic for manufacturers, faced with unprecedented shortages of components. Global sales fell 14% in 2020, the year of the health crisis, to rebound by only 5% in 2021. However, last year, players were able to reap the benefits of their efforts on their fixed cost structure. .

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