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(Kitco News) - Automaker Stellantis (NYSE: STLA) today announced the signing of a binding offtake agreement with Alliance Nickel (ASX: AXN) for the supply of 170,000 tons of nickel sulphate and 12,000 tons of cobalt sulphate in total over an initial five-year period.
The company said that these volumes represent approximately 40% of forecast annual production of the NiWest nickel-cobalt project in Western Australia, adding that pricing for the nickel and cobalt sulphate is linked to index prices.
In addition, Stellantis agreed to purchase €9.2 million (AUD15 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.
"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 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."
According to a press release, funds 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.
As part of the Dare Forward 2030 strategic plan, Stellantis announced plans of reaching 100% of the passenger car battery electric vehicle (BEV) sales mix in Europe and 50% of passenger car and light-duty truck BEV sales mix in the United States by 2030.
Stellantis aims to slash CO2 in half by 2030, benchmarking 2021 metrics, and achieve carbon net zero by 2038 with single digit percentage compensation of the remaining emissions.
Stellantis said it is assembling a roster of key partnerships to ensure a stable supply of key materials for its electrified future. In addition to Alliance Nickel, Stellantis has partnerships with McEwen Copper, Terrafame, Vulcan Energy, Element 25 and Controlled Thermal Resources.
Stellantis is one of the world’s leading automakers and a mobility provider. Its brands include Abarth, Alfa Romeo, Chrysler, Citroën, Dodge, DS Automobiles, Fiat, Jeep®, Lancia, Maserati, Opel, Peugeot, Ram, Vauxhall, Free2move and Leasys.
Alliance Nickel is an ASX-listed nickel and critical minerals development company with its principal asset being its flagship 100% owned NiWest nickel-cobalt project containing one of the highest-grade undeveloped nickel laterite resources in Australia.
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