Italian-French car giant Stellantis has further strengthened its value chain for electric vehicle (EV) battery production with a supply agreement for battery-grade nickel and cobalt sulphate from the NiWest project in Western Australia.
Stellantis, the world’s third largest automaker by revenue and parent company of names like Alfa Romeo, Peugeot, Chrysler, Dodge, RAM, and Jeep, has signed a binding off-take agreement with Australia’s Alliance Nickel Ltd (formerly GME Resources), and taken a strategic stake run the company.
The offtake agreement will see Stellantis secure supply of 170,000 tonnes of nickel sulphate and 12,000 tonnes of cobalt sulphate in total over an initial five-year period. This accounts for approximately 40% of forecast annual production of the NiWest Nickel-Cobalt Project in Western Australia.
Stellantis also agreed to purchase €9.2 million ($A15 million) of new equity in the WA- headquartered company, which will give Stellantis an 11.5% shareholding on completion and the right to nominate one director to the board.
Stellantis was quick to paint the new offtake agreement as part of its larger “Dare Forward 2030” strategic plan and its medium-term plan to become a net zero company by 2038.
“The commitments of Dare Forward 2030 and our industry-leading decarbonization drive are built on the foundation of a guaranteed supply of key materials for our battery electric vehicles,” said Carlos Tavares, Stellantis CEO.
“The partnership with Alliance Nickel is an important element of our plan to provide clean, safe and affordable mobility for people throughout the world.”
As part of Stellantis’ Dare Forward 2030 strategic plan, the company is aiming to reach 100% battery electric sales mix in Europe and 50% passenger car and light-duty truck BEV sales mix in the United States by 2030.
Stellantis is also targeting a goal of cutting CO2 in half by 2030 and reaching carbon net zero, across all three scopes, by 2038.
“We know the role and responsibility we have in addressing the environmental and social challenges that face our world, including embracing innovative solutions to preserve freedom of mobility for all,” said Tavares, speaking at the launch of the company’s second Corporate Social Responsibility Report.
This latest offtake agreement serves to further solidify the partnership between Stellantis and Alliance Nickel which was originally set in motion in October 2022 with a non-binding memorandum of understanding for the supply of electric vehicle battery materials.
“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, Alliance Nickel managing director and CEO.
“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.
Joshua S. Hill is a Melbourne-based journalist who has been writing about climate change, clean technology, and electric vehicles for over 15 years. He has been reporting on electric vehicles and clean technologies for Renew Economy and The Driven since 2012. His preferred mode of transport is his feet.