Stellantis has teamed up with lithium group Vulcan Energy Resources to develop geothermal energy projects in Germany to help decarbonize production of vehicles at Rüsselsheim, the automaker said in a statement.
Stellantis' Rüsselsheim facility is where the automaker produces its DS 4 and Opel Astra models.
"Stellantis and Vulcan will aim to produce clean electricity and supply it to the grid for both internal and external consumption, in accordance with Germany's Renewable Energy Act (EEG), while also producing heat to be transferred to Stellantis' manufacturing site, the two companies said.
War in Ukraine has tightened Europe's energy supply, causing uncertainty for manufacturers already suffering from strained supply chains for raw materials and components such as semiconductors.
Australia-based Vulcan initially will carry out a pre-feasibility study for the development of energy projects.
The two companies together will seek public funding opportunities for it while Stellantis, which holds an 8 percent stake in Vulcan, will aim to source funding for 50 percent of the project's development.
Stellantis CEO Carlos Tavares said the partnership with Vulcan reinforced the group's commitment to greater use of clean energy.
"It is one of many actions we have taken to drive results, impact, and sustainability," he said.
The automaker already has a deal with Vulcan for the supply of lithium from the miner's project in the Upper Rhine Valley in Germany.
Extending its network of direct deals with raw material suppliers for EV batteries, Stellantis last week signed a contract with Australian miner Element for manganese sulphite.
It previously announced agreements with GME Resources on nickel and cobalt sulphate and with U.S.-based Controlled Thermal Resources for lithium hydroxide.
Stellantis wants battery electric vehicles to account for 100 percent of its European passenger car sales and 50 percent of its U.S. passenger car and light-duty truck sales by 2030.