Under the terms of the offtake agreement, Alliance Nickel will supply 170,000 tons of nickel sulphate and 12,000 tons of cobalt sulphate in total over an initial five-year period
Alliance to supply nickel and cobalt to Stellantis. (Credit: CHUTTERSNAP on Unsplash)
Dutch automotive manufacturer Stellantis has signed an agreement with Alliance Nickel to offtake battery-grade nickel and cobalt sulphate from the NiWest project in Western Australia.
Under the terms of the offtake agreement, Alliance Nickel will supply 170,000 tons of nickel sulphate and 12,000 tons of cobalt sulphate in total over an initial five-year period.
The agreement indicates around 40% of the forecast annual production of the NiWest nickel-cobalt project.
In addition to the offtake, Stellantis has agreed to buy new equity in Alliance Nickel, worth €9.2m, in exchange for an 11.5% shareholding upon completion.
The Dutch carmaker also holds the right to nominate one director to the Alliance board.
The completion of the binding offtake and share subscription agreements is subject to customary closing conditions, including regulatory approvals.
Stellantis CEO Carlos Tavares said: “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.
“The partnership with Alliance Nickel is an important element of our plan to provide clean, safe and affordable mobility for people throughout the world.”
The offtake and share purchase agreements build on the existing partnership between Stellantis and Alliance, for the supply of electric vehicle battery materials, that started in October last year.
Alliance said that the partnership will strengthen Stellantis’ electric vehicle battery production.
It will also support the Definitive Feasibility Study (DFS) and engineering design works at NiWest project, expected to be complete in the last quarter of this year, said the company.
Furthermore, Alliance Nickel and Stellantis jointly partner with McEwen Copper, Terrafame, Vulcan Energy, Element 25, and Controlled Thermal Resources.
Alliance Nickel CEO and managing director Paul Kopejtka 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.
“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.
“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.”