GME Resources, Stellantis seal cobalt, and nickel deal for battery production

Automaker Stellantis has signed a non-binding preliminary agreement with GME Resources to secure supplies of cobalt and nickel sulfate for electric vehicle (EV) batteries.

The agreement marks a further move by the world’s fourth largest car producer to lock down supplies of metals needed for batteries that power EV cars, ahead of an expected surge in global demand as a transition towards cleaner energy gains traction.

Earlier in 2022, the Stellantis group signed a lithium supply agreement with developer Vulcan Energy Resources and said the firm would invest 50 million euros ($48.6 million) to buy an 8% stake in it.

The GME mining company and Stellantis said in a statement that the memorandum represented the first step toward a potential long-term collaboration.

The supply will come from cobalt and nickel advanced mining project in Western Australia called “NiWest,” which the mining company is currently developing, with a planned production of around 90,000 tons yearly of battery-grade cobalt sulfate and nickel.

Maxime Picat, the Chief Purchasing and Supply Chain Officer at Stellantis said that securing the raw material sources and battery supply would strengthen the carmaker's value chain for EV production and support its decarbonization target.

The owner of brands including Jeep, Peugeot, Fiat, Citroen, Opel, and Maserati, Stellantis, has promised to make up 100% of its sales in Europe and 50% of its sales in the US from battery EVs by 2030.