European materials technology and recycling group Umicore has signed a long-term supply agreement with Finnish state mining firm Terrafame for nickel sulphate. The agreement will see Terrafame providing a significant portion of Umicore’s nickel requirements for its cathode materials plant in Nysa, Poland. The details of the purchase quantities, contract period, or order value have not been disclosed. Umicore selected Terrafame as its nickel supplier due to the Finnish company’s low carbon footprint in its nickel sulphate manufacturing process, which reduces the carbon footprint of battery-grade nickel by more than 60% compared to the industry average.
Umicore CEO Mathias Miedreich stated that the partnership with Terrafame will contribute to the European Union’s Green Deal and help achieve a sustainable supply chain for electric vehicle (EV) battery materials in Europe.
“Umicore’s partnership with Terrafame provides yet another important contribution to the European Union’s Green Deal ambitions and to achieving a regionally independent and sustainable supply chain for EV battery materials in Europe,” said Mathias Miedreich CEO of Umicore. “Umicore’s contribution to creating a sustainable battery supply chain and to reducing the scope 3 greenhouse gas emissions of our customers is part of our sustainability convictions and our differentiating competitive and strategic positioning.”
Umicore supplies cathode materials to major players in the automotive industry such as Stellantis, Total, and Mercedes-Benz, as well as to Volkswagen’s future European cell factories. Terrafame, a known supplier in the automotive industry, has previously signed supply agreements for nickel sulphate with Stellantis and Renault.
“We have conducted a rigorous product qualification process together with Umicore and are pleased to have started commercial supplies meeting Umicore’s high standard on quality and sustainability,” Terrafame CEO Joni Lukkaroinen said of the cooperation.
The new agreement is part of Umicore’s ongoing efforts to secure long-term supply contracts for critical battery metals, including nickel, cobalt, and lithium. The company has concluded long-term supply contracts for lithium with Ganfeng Lithium and Vulcan Energy Resources with an initial term of five years, which can be extended by mutual agreement.
Umicore and Terrafame’s partnership provides a significant step towards creating a sustainable and independent battery supply chain in Europe, as well as reducing the greenhouse gas emissions associated with EVs.
