Stellantis N.V. and Australia-based Kuniko Ltd announced the signing of a binding offtake term sheet agreement securing a 35% future production offtake of nickel sulfate and cobalt sulfate from Kuniko’s Norwegian exploration projects for a term of nine years.

Kuniko’s projects located in Norway are targeting three fundamental metals for electromobility: cobalt, nickel and copper. Its projects in Canada are targeting lithium for electric vehicle batteries.

In addition, Stellantis agreed to purchase €5.0 million (A$8 million) in new equity in Kuniko, giving it a 19.99% shareholding on completion and rights to nominate one director to the Kuniko board.

We are on an aggressive path to securing a holistic portfolio of raw materials needed to meet our Dare Forward 2030 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.

—Stellantis Chief Purchasing and Supply Chain Officer Maxime Picat

Funds from the equity purchase will be applied to advance Kuniko’s brownfield and greenfield battery metals exploration projects in Norway which include nickel, cobalt and copper.

As part of the Dare Forward 2030 strategic plan, Stellantis announced plans of reaching a 100% passenger car battery-electric vehicle (BEV) sales mix in Europe and a 50% passenger car and light-duty truck BEV sales mix in the United States by 2030. Stellantis is on track to become a carbon net zero corporation, all scopes included, by 2038, with single digit percentage compensation of remaining emissions.

Completion of the binding offtake and share subscription agreements are subject to customary closing conditions, including regulatory approvals.

Stellantis is assembling a roster of partnerships to ensure a stable supply of key materials for its electrified future. In addition to Kuniko, Stellantis has agreements with Alliance Nickel, McEwen Copper, Terrafame, Vulcan Energy, Element 25 and Controlled Thermal Resources.