Stellantis, GME Sign MoU for Nickel, Cobalt Supply
- October 10, 2022
- Posted by: Quatro Strategies
- Category: Manufacturing
Stellantis and GME Resources signed a memorandum of understanding (MoU) for the future sale of battery grade nickel and cobalt from the NiWest Nickel-Cobalt Project in Western Australia. NiWest is an advanced nickel-cobalt development project and will produce approximately 90,000 tpa (tons per annum) of battery grade nickel and cobalt sulphate for the burgeoning electric vehicle market.
More than A$30 million has been invested so far into drilling, metallurgical test work and development studies for the project. A Definitive Feasibility Study for the project is set to start this month.
“Every day, Stellantis is working to provide our customers clean, safe affordable, cutting-edge freedom of mobility,” said Stellantis Chief Purchasing and Supply Chain Officer Picat. “Securing the raw material sources and battery supply will strengthen Stellantis’ value chain for electric vehicle battery production and equally important, help the Company achieve its aggressive decarbonization target.”
As part of its 2030 targets, Stellantis announced its plans to reach 100% BEV passenger car sales mix in Europe and 50% passenger car and light-duty truck BEV sales mix in the United States. The company aims to be the industry champion in climate change mitigation, becoming carbon net zero by 2038, with a 50% reduction by 2030.
“Stellantis is a partner of the highest caliber and GME is delighted to have signed this MOU in what we hope is the first step in a long-term partnership,” GME Managing Director Kopejtka said. “We’re very pleased with how our discussions have progressed and we now look forward to progressing more detailed negotiations in parallel with the start of the Definitive Feasibility Study for the NiWest Nickel-Cobalt Project. A Definitive Agreement with Stellantis would be a critical step in being able to progress the NiWest Project through to commercial operations.”
This is not the first deal Stellantis signed this year to strengthen its supply of battery metals. The company also signed agreements with Vulcan Energy and Controlled Thermal Resources earlier this year to secure its supply of low-carbon lithium hydroxide.
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