Stellantis orders raw battery materials in Australia
Stellantis has secured nickel and cobalt from Australia. The car company entered into a binding agreement with Alliance Nickel (formerly GME Resources) to supply 170,000 tonnes of nickel sulphate and 12,000 tonnes of cobalt sulphate over an initial period of five years.
This corresponds to about 40 per cent of the projected annual production of the NiWest nickel-cobalt project in Western Australia. Both companies had entered into a non-binding agreement for the now-completed deal in October 2022. Stellantis also acquires an 11.5 per cent stake in Alliance Nickel for 15 million Australian dollars (€9.2 million), giving it the right to nominate a director to Alliance’s board of directors.
However, it is not clear from the communication when exactly the supply is to begin. The NiWest project is not yet in operation, and the first work is to be done this year. However, a possible commissioning date is not yet mentioned.
Stellantis is also acquiring an 11.5 per cent stake in Alliance Nickel for 15 million Australian dollars (9.2 million euros), giving it the right to nominate a director to Alliance’s board. The funds from the share purchase will be used to complete the NiWest project’s definitive feasibility study and design work, which is expected to be carried out in Q4 2023.
Stellantis CEO Carlos Tavares talks about the deal as “the foundation of a guaranteed supply of key materials for our battery electric vehicles”. “The partnership with Alliance Nickel is an important element of our plan to provide clean, safe and affordable mobility to people around the world,” the Portuguese said.
“The binding agreements with Stellantis, one of the world’s leading and most forward-thinking vehicle manufacturers, are transformative for the future of Alliance,” said Paul Kopejtka, Managing Director and CEO of Alliance Nickel. “It validates our development strategy for the NiWest Nickel-Cobalt Project and opens critical new funding options by securing a premier Tier 1 cornerstone customer and investor.”
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