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AMSTERDAM, 4 July 2023: Stellantis, the world’s fourth-largest automaker, has signed an offtake agreement with Kuniko Ltd, a Norwegian battery materials company, to secure a supply of nickel and cobalt sulphate for its electric vehicles.
Stellantis Offtake Agreement
Under the terms of the agreement, Stellantis will purchase 35% of the future annual production of nickel sulphate and cobalt sulphate from Kuniko’s Norwegian exploration projects for a period of nine years. The agreement also includes an option for Stellantis to increase its offtake to 50%.
In addition to the offtake agreement, Stellantis has also agreed to purchase USD 5.45m (AUD 8m) in new equity in Kuniko, giving it a 19.99% shareholding in the company. This investment will help to fund Kuniko’s exploration and development activities in Norway.
The agreement is a major step forward for Stellantis in its efforts to secure a sustainable and reliable supply of battery materials for its electric vehicles. Norway is a leading producer of nickel and cobalt, and the country’s mining industry is committed to responsible and sustainable practices.
The agreement also supports Stellantis’ Dare Forward 2030 strategic plan, which aims to make the company a leader in the global electric vehicle market. By 2030, Stellantis plans to have 100% battery electric vehicle sales in Europe and 50% battery electric vehicle sales in the United States.
The completion of the binding offtake and share subscription agreements is subject to customary closing conditions, including regulatory approvals.
Key Highlights
- Stellantis has signed an offtake agreement with Kuniko Ltd. to secure a supply of nickel and cobalt sulphate for its electric vehicles.
- The agreement is for a period of nine years and will see Stellantis purchase 35% of Kuniko’s future annual production.
- Kuniko’s battery materials are produced using a hydrometallurgical process that is considered to be more sustainable than traditional mining methods.
- The agreement is a sign of the growing importance of battery materials for the global automotive industry.
- As more automakers transition to electric vehicles, the demand for these materials is expected to increase significantly.
