Stellantis signed a battery supply deal for nickel and cobalt sulfate with Alliance Nickel Ltd. The mineral supply deal may help Stellantis’ electric vehicles (EVs) in the United States meet the battery requirements for EV tax incentives under the Inflation Reduction Act (IRA).
Alliance Nickel Ltd. and Stellantis entered into a binding offtake agreement for 170,000 tons of nickel sulfate and 12,000 tons of cobalt sulfate over an initial five-year period. Stellantis’ battery deal represents approximately 40% of the NiWest Project’s forecasted annual production. The price for Alliance’s nickel and cobalt sulfate depends on index prices.
The battery minerals will come from Alliance’s NiWest Project in Western Australia. The United States has a free trade agreement with Australia, meaning Stellantis may qualify for the IRA’s $3,750 credit. The $3,750 EV tax credit applies to automakers whose battery packs contain critical minerals from the United States or any country that has a free trade agreement with the US.
Stellantis also entered a share subscription agreement with the battery mineral supplier. The AU$15 million ($9.9 million) share subscription gave Stellantis 11.5% shareholding in Alliance Nickel and a right to nominate one director to the mining company’s board.
“The commitments of Dare Forward 2030 and our industry-leading decarbonization drive are built on the foundation of a guaranteed supply of key materials for our battery electric vehicles. The partnership with Alliance Nickel is an important element of our plan to provide clean, safe, and affordable mobility for people throughout the world,” commented Stellantis CEO Carlos Tavares.