EV Battery Gold Rush – Stellantis and Alliance Nickel

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Stellantis N.V. (NYSE: MTA. Euronext Paris: STLA) and Alliance Nickel Ltd (formerly GME Resources – ASX: AXN, Alliance) today announced the signing of a binding offtake agreement for the supply of 170,000 tons of nickel sulphate and 12,000 tons of cobalt sulphate in total over a five-year period. This represents ~40% of forecast annual production of the NiWest Nickel-Cobalt Project in Western Australia. Pricing for the nickel and cobalt sulphate is linked to index prices. This advances the MoU on the sale of battery nickel and cobalt sulphate from Western Australia entered last October. (EV Battery Gold Rush Persists with Stellantis and GME)

NiWest is an advanced nickel-cobalt development project in Western Australia that hopes to produce ~90,000 tpa (tons per annum) of battery grade nickel and cobalt sulphate for the electric vehicle market. To date, more than AU$30 million has been invested into drilling, metallurgical test work and development studies.

Stellantis today also agreed agreed to purchase €9.2 million (AU$15 million) in new equity in Alliance Nickel, giving it an 11.5% shareholding on completion and rights to nominate one director to the Alliance board. Money from the equity purchase will be applied to the completion of the NiWest Project Definitive Feasibility Study and engineering design works, expected in the last quarter of 2023.

“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 Stellantis CEO Carlos Tavares. “The partnership with Alliance Nickel is an important element of our plan to provide clean, safe and affordable mobility for people throughout the world.”

Stellantis strengthened its supply of low-carbon lithium hydroxide during 2022, signing agreements with Vulcan Energy and Controlled Thermal Resources for Europe and North America, respectively. (Stellantis Gets Lithium Supply for NA EVs; Stellantis Has Lithium Supply Deal with Vulcan Energy)

“We look forward to a long partnership with Stellantis as we continue to execute our strategy to become the next Australian supplier to the global markets of premium battery-grade nickel and cobalt sulphate. This is truly a ‘We Win Together’ outcome for both companies,” said Paul Kopejtka, Alliance Managing Director and CEO.