Stellantis, the global automotive company, has entered into a binding agreement with Alliance Nickel (formerly GME Resources) to secure a significant supply of nickel and cobalt for the production of its battery electric vehicles (BEVs). The deal will see the company receive 170,000 tonnes of nickel sulphate and 12,000 tonnes of cobalt sulphate over an initial period of five years from the NiWest nickel-cobalt project in Western Australia.
This agreement will provide Stellantis with around 40% of the projected annual production from the NiWest project, which is expected to begin work later this year, although a commissioning date has not yet been confirmed. In addition to securing the supply, Stellantis will also acquire an 11.5% stake in Alliance Nickel for AUD 15 million (âŹ9.2 million) and gain the right to nominate a director to Alliance’s board of directors.
See also: Stellantis secures key raw materials for EV batteries from GME Resources
The CEO of Stellantis, Carlos Tavares, hailed the deal as “the foundation of a guaranteed supply of key materials for our battery electric vehicles,” adding that the partnership with Alliance Nickel is a vital part of Stellantis’ plan to provide clean, safe, and affordable mobility to people worldwide.
Alliance Nickel’s Managing Director and CEO, Paul Kopejtka, also praised the agreement, saying that it validates the company’s development strategy for the NiWest project and opens up critical new funding options by securing a premier Tier 1 cornerstone customer and investor.
The funds from Stellantis’ 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.
The agreement with Alliance Nickel is a significant milestone for Stellantis, as it aims to accelerate its transition to electrification and reduce its carbon footprint. By securing a reliable and sustainable supply of nickel and cobalt, Stellantis can continue to meet the growing demand for BEVs and help drive the industry towards a cleaner and more sustainable future.
