Canada-based mineral exploration company Argentina Lithium & Energy has closed the previously announced $90m investment from automaker and mobility solutions provider Stellantis.

In line with the transaction, Peugeot Citroen Argentina, a subsidiary of Stellantis, made the investment to acquire the shares of Argentina Lithium & Energy’s subsidiary Argentina Litio y Energia (ALE).

As part of the investment, Stellantis has acquired the right to exchange all of Argentina Litio y Energia’s shares for up to 19.9% of the outstanding common shares of Argentina Lithium & Energy in the future.

Besides, the companies have entered into a lithium offtake agreement, a shareholders’ agreement with respect to ALE and upon exercise of the exchange right.

Furthermore, Argentina Lithium & Energy and Stellantis will sign an investor rights agreement.

Under the offtake agreement, Stellantis will purchase up to 15,000 tonnes per annum of lithium produced by Argentina Litio y Energia over a period of seven years.

The offtake agreement is extendable by mutual agreement for an additional number of years after the initial seven-year term.

Following the completion of the deal, Stellantis owns 19.9% of the issued and outstanding shares of Argentina Litio y Energia while Argentina Lithium & Energy holds the remaining 80.1%.

According to the Canadian company, the proceeds of the transaction will be used to advance the development of its lithium projects held through its fully-owned subsidiary in Argentina as well as for general corporate purposes.

Argentina Lithium & Energy is focused on acquiring high quality lithium projects in Argentina and advancing them towards production.

The company’s portfolio comprises Rincon West, Antofalla North, Pocitos, and Incahuasi lithium projects located in Argentina.

In August 2023, Stellantis announced over $100m investment in Controlled Thermal Resources (CTR) to advance the development of Hell’s Kitchen geothermal lithium project.