Stellantis has announced that they have signed a non-binding preliminary agreement with mining company GME Resources to provide them nickel and cobalt sulfate for EV batteries.
Stellantis has an aggressive electrification goal; 100% of European sales and 50% of US sales being electric by 2030. Reuters reports that the company has formed an initial agreement to receive necessary raw materials, nickel and cobalt sulfate, from GME Resources to achieve this.
GME Resources is currently planning to open their “NiWest” facility in Western Australia, which aims to produce 90,000 tons of material annually, some of which Stellantis would like to use in their numerous vehicles.
While this is a very early step in a deal between the two companies, with no financial or material tonnage numbers being revealed, it follows a positive trend for the auto group. Stellantis has already made a significant deal to secure lithium from Vulcan Energy, Stelantis executives made it clear that they hope an agreement with GME can foster a long-term relationship, and these deals follow numerous Stellantis brands announcing new EV models for the upcoming year/s.
Jeep, Stellantis’ leading American brand, just recently unveiled their electric vehicles coming to North America and Europe, while even Maserati (a notoriously anti-EV brand) has introduced their first electric offering, the Maserati GranTurismo. But other than fueling upcoming EV models from brands, these resources also help the brands battle with Tesla. Tesla took Europe by storm in September, holding the best-selling vehicle in Germany and the second-best-selling car in the UK (Tesla Model Y).
What remains unclear is how the auto group’s many European brands will be dealing with the current European energy crisis and the inflationary pressures that are hurting many of the continent’s currencies. This deal may be the glimmer of hope that the company needs to make it through the upcoming winter.