Business signs LOI with Controlled Thermal Resources to purchase Lithium and renewable energy
LOS ANGELES, April 19, 2022 /PRNewswire/ — Lars Carlstrom, the founder-CEO of Italvolt, has today announced the launch of a new company, Statevolt, which will construct a 54GWh Gigafactory in Imperial Valley, southern California with an expected CapEx of $4 billion. To launch the new facility, Statevolt has also signed a Letter of Intent (LOI) with Controlled Thermal Resources (CTR).
Under the terms of the LOI, CTR will deliver sustainable, locally produced lithium and geothermal power, from the company’s to-be constructed Hell’s Kitchen Lithium and Power development. Statevolt is currently undertaking due diligence to determine the best location on which to build its facility. Once fully operational, the Gigafactory will be one of largest in North America, with a battery production capacity of 54GWh, serving around 650,000 electric vehicles a year at full capacity.
Led by Lars Carlstrom, the founder of Britishvolt and founder-CEO of Italvolt, Statevolt’s project team brings deep industry experience and expertise to the project, as well as an eco-system of established project development partners. Carlstrom, and the newly-formed Statevolt team, will harness previous learnings in Gigafactory design and engineering, to accelerate the construction process and create an industry leading facility.
CTR’s leadership team, having constructed and managed geothermal operations in the Imperial Valley region for over 30 years, are uniquely positioned to provide Statevolt with strong regional experience and technical knowledge to optimize Statevolt’s commitment to deliver the highest standards of sustainability.
Statevolt’s planned partnership with CTR brings a new, ‘hyper-local’ sustainable business model for lithium-ion battery development in the U.S. The arrangement is one of the first of its kind in the world and will see the business source its key feedstock, lithium, and its power from local resources, in order to minimize the environmental impact of production and build a more sustainable and secure supply chain. Simultaneously it will help facilitate the development of a micro-industry in the area, delivering up to 2,500 direct jobs for Imperial Valley and the region more widely.
The LOI between Statevolt and CTR is built on the two companies’ shared commitment to support the energy transition in California and the U.S. Global Lithium demand for EVs and storage which is forecast to reach 383 killotones by 2030. Following the Biden Administration’s target to ensure that half of automotive sales are EVs by 2030, the rapid development of batteries and supply chain resilience is crucial to meet consumer demand, in the near-to-medium term.
Lars Carlstrom, founder, of Statevolt, said: “The development of lithium-ion batteries is crucial for the U.S. to meet its goals to transition to Net Zero. Statevolt is proud to begin its journey to develop U.S. expertise and production of lithium-ion batteries, as we look to serve this critical market.
“Today, we face a significant shortage in the amount of lithium that is required to meet the demand for electric vehicles. We are pioneering a new, hyper-local business model, which prioritises sustainability and resilience in the supply chain to solve this issue. More importantly, we believe this model will offer Statevolt a significant advantage in producing lithium-ion batteries at scale, to meet booming consumer demand and create good-paying, highly skilled jobs.
“We are pleased to be collaborating with CTR and its industry-leading, and highly-specialized approach to sustainable lithium production and development. Together, through the construction and development of Statevolt, we will support the nation’s energy transition while retaining a keen focus on low-cost, sustainable battery manufacture.
Rod Colwell, CEO of Controlled Thermal Resources, said: “CTR is absolutely delighted to further our relationship with Statevolt. We applaud Lars and his team for taking a proactive approach to ensure the company’s future lithium supply, while also consciously seeking out the cleanest lithium and power available for Statevolt’s first U.S. Gigafactory.”
“The extraordinary growth in electric vehicle adoption and the emerging demand for energy storage systems to provide clean power, highlights the urgent need to develop a strong and secure battery supply chain in the United States. CTR continues to develop its significant resource in response to this unprecendented demand, and we look forward to collaborating with Statevolt as we accelerate these efforts.”