Stellantis (STLAM.MI) struck an offtake and equity investment agreement with Australia-listed Kuniko (KNI.AX) to secure a consistent supply of battery materials.
The two businesses announced Friday that the Franco-Italian manufacturer would receive 35% of Kuniko’s future battery-grade nickel and cobalt sulfate production for nine years.
They also said Stellantis would buy 5 million euros ($5.4 million) of Kuniko shares for a 19.99% ownership and the right to choose one board member.
Stellantis funds Kuniko’s Norway nickel, cobalt, and copper battery metals exploration projects.
Stellantis’ Chief Purchasing and Supply Chain Officer Maxime Picat said the world’s third largest carmaker by sales was on an “aggressive path” to obtaining raw materials for electrification.
“With Kuniko, we are adding another lever to support our European battery needs with a local and environmentally conscious solution from its Norwegian projects,” he said.
Since merging Fiat Chrysler and Peugeot maker PSA in early 2021, Stellantis has signed supply agreements for electric vehicle production materials with Alliance Nickel (AXN.AX), McEwen Copper (MUX.TO), Terrafame, Vulcan Energy (VUL.AX), Element 25 (E25.AX), and Controlled Thermal Resources.
The two firms stated the offtake agreement and Kuniko share subscription are subject to regulatory approvals.
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