Stellantis invests in commodities company Kuniko
Stellantis has secured nickel and cobalt from Norway for its electric car batteries. The group signed a binding offtake agreement with Kuniko and plans to acquire nearly one-fifth of the shares in the exploration company.
The deal secures Stellantis 35 per cent of the nickel sulphate and cobalt sulphate from Kuniko’s Norwegian exploration projects over a nine-year term. However, it is unknown how many tonnes are involved, when the first delivery will be made and how the deliveries will be spread over the nine-year term.
Kuniko is an Australian-based exploration company with projects in Norway and Canada. The company wants to offer “zero carbon” battery metals that have been sustainably and ethically extracted. That is why it chose the locations in Norway and Canada – 98 per cent of the electricity there comes from renewable energies, Kuniko says on its website.
Kuniko has exclusive mining licences covering 1,084 square kilometres spread over five projects in Norway. In Gullklumpan, Undal-Byberget and Vaga, the focus is on copper; in Skuterud, on cobalt and copper; in Ringerrike, on nickel, cobalt and copper. The three Canadian projects, Mia North, Fraser Lithium and Nemaska South, are all about lithium.
Stellantis also plans to invest €5 million in Kuniko, giving the car company a 19.99 per cent stake in Kuniko after closing and the right to nominate a director to Kuniko’s board. The execution of the binding acceptance and share subscription agreements is subject to customary closing conditions, including regulatory approvals.
“We are on an aggressive path to securing a holistic portfolio of raw materials needed to meet our Dare Forward 2030 electrification targets,” says Stellantis Chief Purchasing and Supply Chain Officer Maxime Picat. “With Kuniko, we are adding another lever to support our European battery needs with a local and environmentally conscious solution from its Norwegian projects.”
“This strategic partnership with Stellantis promotes sustainable European battery value chain solutions and validates the potential of our battery metals project portfolio in Norway,” says Antony Beckmand, Kuniko CEO. “Together with Stellantis, we eagerly anticipate working hand in hand to achieve exploration success, move towards production, and make meaningful contributions to the growth and advancement of the European battery industry.”
Stellantis has systematically invested in the battery supply chain for several years. The carmaker partnered with Vulcan Energy for lithium mining in Europe. In June, Stellantis announced that it was taking a stake in mines in Brazil, along with VW and Glencore. In addition, Stellantis orders other battery materials from raw material companies itself, instead of relying on its battery partners.
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