Stellantis (STLA) on 'aggressive path', signs battery material supply deal with Kuniko

Stellantis (NYSE: STLA) and Australia-listed Kuniko revealed Friday that the two companies have signed an offtake and equity investment agreement with the aim to give Stellantis a stable supply of key materials for vehicle batteries. According to the terms of the agreement, Stellantis will receive a 35% share of the upcoming production of battery-grade nickel sulphate and cobalt sulphate from Kuniko's projects for a duration of nine years.

Stellantis also agreed to buy new shares in Kuniko worth 5 million euros ($5.4 million), giving it a 19.99% stake in the company and the power to appoint one board member, they added.

Maxime Picat, Chief Purchasing and Supply Chain Officer of Stellantis, expressed that the company is actively pursuing an assertive approach and is on an "aggressive path" to secure the necessary raw materials for achieving its electrification objectives.

"With Kuniko, we are adding another lever to support our European battery needs with a local and environmentally conscious solution from its Norwegian projects," he said.

The completion of the offtake agreement and of the share subscription with Kuniko are subject to conditions, including regulatory approvals, the two companies said.

Shares of STLA are up 0.49% in morning trading on Friday.

By Michael Elkins | [email protected]

You May Also Be Interested In

• Born in '41, Built for Now: Jeep® Brand Unveils the 2027 Jeep Wrangler Sarge
• Laser Photonics regains NASDAQ compliance after filing quarterly report
• Soccer Madness! Jeep® Brand Offers Americans Named George Washington a Chance at a Jeep Wrangler if America Wins It All (Yes, Really)