Get Charged Up – Stellantis Amps Up The EV Supply Chain With Australian Battery Materials

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Tesla has got some serious competition! Stellantis, the European automobile giant, is using Australian battery materials to supercharge its electric vehicle (EV) supply chain!

Italian-French automobile conglomerate Stellantis has bolstered its electric vehicle (EV) battery production value chain through a supply agreement for battery-grade nickel and cobalt sulphate from Western Australia’s NiWest project.

Stellantis, the world’s third-largest automaker in terms of revenue and the parent company of renowned brands such as Alfa Romeo, Peugeot, Chrysler, Dodge, RAM, and Jeep, has entered into a binding off-take agreement with Australia’s Alliance Nickel Ltd (formerly GME Resources) and acquired a strategic stake in the company.

Stellantis Highlights Off-Take Agreement as Key to Decarbonization Strategy

Under the off-take agreement, Stellantis will secure the supply of 170,000 tonnes of nickel sulphate and 12,000 tonnes of cobalt sulphate over an initial five-year period. This represents around 40% of the projected annual production of the NiWest Nickel-Cobalt Project in Western Australia.

Additionally, Stellantis has committed to purchasing €9.2 million ($A15 million) worth of new equity in the Western Australia-based company, granting Stellantis an 11.5% shareholding upon completion and the right to nominate one director to the board.

Stellantis wasted no time positioning the new off-take agreement as an integral part of its broader “Dare Forward 2030” strategic plan and its medium-term objective to achieve carbon neutrality by 2038.

“The commitments of Dare Forward 2030 and our industry-leading decarbonization drive rely on a secure supply of essential materials for our battery electric vehicles,” stated Carlos Tavares, CEO of Stellantis.

“Our partnership with Alliance Nickel is crucial to our mission to provide clean, safe, and affordable mobility for people worldwide.”

Stellantis Sets Targets for Carbon Neutrality and CO2 Emission Reductions

As part of Stellantis’ Dare Forward 2030 strategic plan, the company aims to achieve a 100% battery electric sales mix in Europe and a 50% passenger car and light-duty truck BEV sales mix in the United States by 2030.

Stellantis also targets a 50% reduction in CO2 emissions by 2030 and aims to attain carbon neutrality across all three scopes by 2038.

“We acknowledge the role and responsibility we have in addressing the environmental and social challenges facing our world, including embracing innovative solutions to preserve mobility for all,” Tavares stated during the launch of the company’s second Corporate Social Responsibility Report.

This recent off-take agreement further cements the partnership between Stellantis and Alliance Nickel, established in October 2022 through a non-binding memorandum of understanding for supplying electric vehicle battery materials.

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