Stellantis Invests In Kuniko For Supply Of European Battery Materials

Stellantis NV STLA has signed a battery materials supply agreement with the Norwegian company Kuniko Ltd. The financial terms were not disclosed.

STLA has inked a binding offtake term sheet agreement securing a 35% future production offtake of nickel sulphate and cobalt sulphate from Kuniko's Norwegian exploration projects for nine years.

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

Also Read: Stellantis Launches Free2move Charging Service For EV Users

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

The agreement is a part of Stellantis Dare Forward 2030, which aims for 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 U.S. by 2030.

Also Read: Stellantis, Foxconn Form Joint Venture To Develop Chips Aimed At Automotive Industry

Price Action: STLA shares are trading higher by 0.52% at $17.54 in premarket on the last check Friday.