The agreement is another step by the world's fourth biggest automaker to secure supply of metals used in batteries that power electric vehicles, ahead of a predicted spike in worldwide demand as the switch to greener transportation gathers hold. Earlier this year, the Franco-Italian corporation inked a lithium supply agreement with developer Vulcan Energy Resources, pledging 48.6 million USD to acquire an 8% interest in the company. Stellantis and the GME said that the pact represents the initial step toward a potential long-term relationship.

The supply will come from "NiWest," a nickel and cobalt advanced mining project in Western Australia that GME is presently developing, with an anticipated annual output of roughly 90,000 tonnes of battery-grade nickel and cobalt sulphate. NiWest's feasibility study is set to begin this month. Stellantis’ Chief Purchasing and Supply Chain Officer stated that securing raw material sources and battery supply will improve the group's value chain for EV manufacturing and help it meet its decarbonisation objective. Stellantis, the owner of Jeep, Peugeot, Fiat, Citroen, Maserati, and Opel, has committed that by 2030, battery electric cars would account for 100% of its sales in Europe and 50% of its sales in the United States.

Movement of Stellantis in the last five years. (Source: Trading Economics)

Sources:

https://tradingeconomics.com/stla:im

https://www.stellantis.com/en/news/press-releases/2022/october/stellantis-signs-non-binding-mou-with-gme-for-future-offtake-of-battery-grade-nickel-and-cobalt-sulphate

https://www.reuters.com/technology/carmaker-stellantis-strikes-nickel-cobalt-supply-deal-battery-production-2022-10-10/

https://www.investing.com/news/stock-market-news/carmaker-stellantis-strikes-nickel-cobalt-supply-deal-for-battery-production-2907916