Stellantis signs deal with Kuniko for supply of battery materials

Vulcan Energy Resources

30/06/2023 07:50

MILAN, June 30 (Reuters) - Stellantis  STLAM.MI  has
signed an offtake and equity investment agreement with
Australia-listed Kuniko  KNI.AX , the latest of a string of
deals aiming to give the carmaker stable supply of key materials
for vehicle batteries.
    Based on the binding agreement, the Franco-Italian automaker
will get 35% of future production of battery-grade nickel
sulphate and cobalt sulphate from Kuniko's exploration projects
in Norway, for nine years, the two companies said on Friday in a
joint statement.
    Stellantis also agreed to buy new shares in Kuniko worth 5
million euros ($5.4 million), giving it a 19.99% stake in the
company and the power to appoint one board member, they added.
    The funds provided by Stellantis will help support Kuniko's
brownfield and greenfield battery metals exploration projects in
Norway, which include nickel, cobalt and copper.
    Stellantis' Chief Purchasing and Supply Chain Officer Maxime
Picat said the world's third largest carmaker by sales was on an
"aggressive path" to securing raw materials needed to meet its
electrification targets.
    "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 its creation in early 2021 through the merger of Fiat
Chrysler and Peugeot maker PSA, Stellantis has lined up supply
agreements for materials needed for electric vehicle production
with Alliance Nickel  AXN.AX , McEwen Copper  MUX.TO ,
Terrafame, Vulcan Energy  VUL.AX , Element 25  E25.AX  and
Controlled Thermal Resources.
    The completion of the offtake agreement and of the share
subscription with Kuniko are subject to conditions, including
regulatory approvals, the two companies said.
($1 = 0.9202 euros)

 (Reporting by Giulio Piovaccari, editing by Gavin Jones)
 ((giulio.piovaccari@thomsonreuters.com))