Canadian junior miner Argentina Lithium & Energy Corp. has closed a US$90m strategic investment from Stellantis N.V., advancing the automaker’s push to secure lithium supply for electric vehicle battery production through direct upstream participation in mining projects.
The transaction sees Peugeot Citroen Argentina S.A., a subsidiary of Stellantis, acquire a 19.9% stake in Argentina Litio y Energia S.A. (ALE), the local operating vehicle for Argentina Lithium’s projects in Argentina. Argentina Lithium retains an 80.1% interest in ALE following completion of the deal.
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The investment forms part of a broader industry shift in which automotive manufacturers are moving beyond traditional supply agreements and taking direct equity positions in critical minerals projects to reduce exposure to battery supply chain volatility, geopolitical risk and future raw material shortages.
Under the agreement, Stellantis has also secured the right to exchange its ALE shares for up to 19.9% of Argentina Lithium’s outstanding common shares, subject to specified conditions. The companies additionally entered into a lithium offtake agreement and shareholder arrangements tied to the development of the Argentine assets.
Funds from the transaction will be directed towards advancing Argentina Lithium’s exploration and development portfolio in the Lithium Triangle, the South American brine region spanning Argentina, Chile and Bolivia that hosts some of the world’s largest lithium resources.
The deal reflects a wider restructuring of the mining technology and battery materials landscape, where EV manufacturers are increasingly influencing mine development timelines, processing strategies and downstream integration models. Strategic investors are placing greater emphasis on traceability, supply security and scalable extraction technologies as battery demand accelerates.
For junior lithium developers, partnerships with OEMs are becoming an increasingly important financing route at a time when capital markets remain selective towards early-stage mining projects. Automakers, meanwhile, are seeking tighter control over raw material procurement as electrification targets increase pressure on future lithium availability.
Stellantis, which owns brands including Fiat, Jeep, Peugeot, Chrysler and Maserati, has expanded its critical minerals strategy in recent years through supply agreements and investments across the battery value chain as it works to support long-term EV production growth.
Argentina Lithium said the proceeds would support continued advancement of its Argentine lithium assets and broader corporate activities as exploration competition across the Lithium Triangle intensifies.
