Alliance, Stellantis strike $15m battery materials deal

Alliance Nickel has struck a $15 million offtake agreement with automotive manufacturer Stellantis to supply battery grade materials for electric vehicles.  

The ASX-listed junior, formerly known as GME Resources, has reached the offtake agreement and share subscription deal for Stellantis to acquire an 11.5 per cent stake in Alliance.

The $15 million deal also gives Stellantis the right to nominate one director to the board.

Netherlands-headquartered Stellantis is the corporation behind several international car brands including Alfa Romeo, Chrysler, Citroen, Fiat and Maserati.

Under the binding offtake agreement, Alliance will supply about 170,000 tonnes of nickel and 12,000 tonnes of cobalt over an initial five-year period.

The battery grade materials will be sourced from Alliance’s flagship NiWest project in Laverton.

But the deal hinges on the successful start-up of commercial production, production qualification and other clauses, according to Alliance.

Under the share subscription agreement, Stellantis will subscribe for $15 million in new equity in Alliance at the price of 18 cents per share.

Alliance chief executive Paul Kopejtka said the deal was transformative for the future of the company.

“It validates our development strategy for the NiWest Nickel-Cobalt project and opens critical new funding options by securing a premier tier 1 cornerstone customer and investor,” he said.

“We look forward to a long partnership with Stellantis as we continue to executive our strategy to become the next Australian supplier to the global markets of premier battery-grade nickel and cobalt sulphate.”

Today’s announcement comes after Alliance and Stellantis signed a non-binding memorandum of understanding in October 2022.

“The partnership with Alliance Nickel is an important element of our plan to provide clean, safe and affordable mobility for people throughout the world,” Stellantis chief executive Carlos Tavares said.

On the ASX, Alliance Nickel shares soared 26.32 per cent to trade at 12 cents at 12.17PM AEST.