MILAN — Stellantis has signed an settlement with Alliance Nickel for the availability of battery grade nickel and cobalt sulphate from the NiWest venture in Western Australia, the 2 teams stated.

The deal, the newest struck in Australia by the world’s third largest automaker by revenues, confirms the nation as a core provider for Stellantis of supplies that are key to producing batteries wanted for electrification of automobiles.

It additionally comes at a time when Chile has introduced plans to nationalize its huge trade for lithium, one other metallic important in batteries, posing questions amongst electrical automobile producers over the steadiness of future provides and costs of battery supplies.

Primarily based on the settlement introduced on Friday, Stellantis’ binding offtake will quantity to 170,000 tons of nickel sulphate and 12,000 tons of cobalt sulphate in complete over an preliminary five-year interval, representing round 40 % of forecast annual manufacturing of the NiWest venture.

The automaker will even make investments 9.2 million euros ($10.1 million) to get a 11.5 % stake in Alliance Nickel. Funds from the fairness buy might be used to finalize and begin the NiWest venture.

Stellantis CEO Carlos Tavares stated the partnership with Alliance Nickel was an necessary factor of the group’s plans, which “are constructed on the inspiration of a assured provide of key supplies for our battery electrical automobiles.”

Stellantis has already reached offers for battery supplies with McEwen Copper, Terrafame, Vulcan Power, Factor 25 and Managed Thermal Sources.

The automaker and Alliance Nickel had already signed in October final yr a non-binding, preliminary settlement for the availability of EV battery supplies.