Stellantis Secures Essential Battery Material Supply via Agreement with Alliance Nickel

What’s Happening

Stellantis N.V. and Alliance Nickel Ltd have reached a significant agreement today. Under the deal, Alliance Nickel will supply Stellantis with 170,000 tons of nickel sulphate and 12,000 tons of cobalt sulphate over the first five years. This amount equates to roughly 40% of the expected annual output of the NiWest Nickel-Cobalt Project in Western Australia. The pricing for the minerals will be index-linked.

Why It Matters

As part of the agreement, Stellantis will also invest €9.2 million (AUD15 million) in Alliance Nickel, acquiring an 11.5% stake in the company and the right to nominate a board director. This strategic partnership is a significant component of Stellantis’ Dare Forward 2030 initiative and decarbonization drive, which aims to secure key materials necessary for the production of battery-electric vehicles.

Key Points

Carlos Tavares, CEO of Stellantis, emphasized the importance of this partnership in their goal to offer clean, safe, and affordable mobility worldwide. Alliance’s managing director and CEO, Paul Kopejtka, hailed the agreement as transformative, stating it validates their development strategy for the NiWest Nickel-Cobalt Project.

This binding offtake and share purchase agreements serve to cement the partnership between Stellantis and Alliance Nickel, which was initiated in October 2022 with a non-binding memorandum of understanding.

Bottom Line

The proceeds from Stellantis’ equity purchase will be used to finalize the NiWest Project Definitive Feasibility Study and engineering design works, projected to be completed by the end of 2023.

This move fits in Stellantis’ broader strategic plan, Dare Forward 2030, which aims to attain a 100% battery-electric vehicle (BEV) sales mix for passenger cars in Europe and a 50% BEV sales mix for passenger cars and light-duty trucks in the United States by 2030. The company also aims to reduce CO2 emissions by half by 2030, compared to 2021, and achieve carbon neutrality by 2038.

The finalization of the binding offtake and share subscription agreements is pending customary closing conditions, including regulatory approvals. Stellantis is creating a network of strategic partnerships, including McEwen Copper, Terrafame, Vulcan Energy, Element 25, and Controlled Thermal Resources, to secure a steady supply of key materials for its electrification future.


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