(Reuters) – Stellantis NV has secured lithium important for its electrical automobile manufacturing in North America from a venture in California, as carmakers worldwide scramble to safe provide of the battery metallic key to the electrical automobile revolution.

Managed Thermal Assets Ltd (CTR) will provide the proprietor of Jeep and Peugeot (OTC:) with as much as 25,000 metric tons per yr of lithium hydroxide over the 10-year time period of the settlement, Stellantis stated on Thursday.

CTR, which operates in California’s Salton Sea, can also be growing a geothermal lithium brine venture to satisfy Basic Motors Co (NYSE:)’s lithium wants.

Lithium demand has soared of late as automakers increase manufacturing of electrical automobiles that use lithium-ion batteries, driving a world provide scarcity of the metallic.

Stellantis, fashioned in 2021 by means of the merger between France’s PSA and Fiat Chrysler (FCA), stated in March it will have 75 battery electrical automobile (EV) fashions in the marketplace and promote 5 million EVs a yr by 2030.

The corporate has additionally stated it expects a scarcity of EV batteries to hit the auto business in 2024-2025 as producers attempt to ramp up EV gross sales whereas constructing new battery factories.

“Making certain now we have a sturdy, aggressive, and low-carbon lithium provide from numerous companions around the globe will allow us to satisfy our aggressive electrical automobile manufacturing plans in a accountable method,” stated Chief Government Carlos Tavares in a press release.

CTR will produce battery grade lithium hydroxide and lithium carbonate together with geothermal vitality in Imperial County, California, with a useful resource manufacturing capability in extra of 300,000 metric tons per yr.