June 30, 2023
Stellantis Signs Offtake Terms and Invests in Kuniko for Supply of Norwegian, Low Carbon Nickel and Cobalt Sulphate
- Stellantis building a well-structured and sustainable European battery materials cluster to meet Dare Forward 2030 electrification targets
- Binding offtake term sheet for battery-grade nickel and cobalt sulphate from the development of Kuniko’s exploration projects in Norway
- Offtake agreement for 35% of future annual production for a nine-year term
- Stellantis purchases €5 million (A$ 8 million) in new equity in Kuniko, giving it a 19.99% shareholding
AMSTERDAM – Stellantis N.V. and Kuniko Ltd (ASX: KNI, Kuniko) today announced the signing of 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 a term of nine years.
In addition, Stellantis agreed to purchase €5.0 million (A$ 8 million) in new equity in Kuniko, giving it a 19.99% shareholding on completion and rights to nominate one director to the Kuniko board.
“We are on an aggressive path to securing a holistic portfolio of raw materials needed to meet our Dare Forward 2030 electrification targets,” said 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,” said 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.”
Funds from the equity purchase will be applied to advance Kuniko’s brownfield and greenfield battery metals exploration projects in Norway which include nickel, cobalt and copper.
As part of the Dare Forward 2030 strategic plan, Stellantis announced plans of reaching 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 United States by 2030. Stellantis is on track to become a carbon net zero corporation, all scopes included, by 2038, with single digit percentage compensation of remaining emissions.
Completion of the binding offtake and share subscription agreements are subject to customary closing conditions, including regulatory approvals.
Stellantis is assembling a roster of partnerships to ensure a stable supply of key materials for its electrified future. In addition to Kuniko, Stellantis has agreements with Alliance Nickel, McEwen Copper, Terrafame, Vulcan Energy, Element 25 and Controlled Thermal Resources.
Stellantis N.V. (NYSE: STLA / Euronext Milan: STLAM / Euronext Paris: STLAP) is one of the world’s leading automakers and a mobility provider. Its storied and iconic brands embody the passion of their visionary founders and today’s customers in their innovative products and services, including Abarth, Alfa Romeo, Chrysler, Citroën, Dodge, DS Automobiles, Fiat, Jeep®, Lancia, Maserati, Opel, Peugeot, Ram, Vauxhall, Free2move and Leasys. Powered by our diversity, we lead the way the world moves – aspiring to become the greatest sustainable mobility tech company, not the biggest, while creating added value for all stakeholders as well as the communities in which it operates. For more information, visit www.stellantis.com.
About Kuniko Limited
Kuniko Limited (ASX: KNI) is a European focused battery minerals explorer and exploration project developer, targeting metals for electromobility, including copper, nickel, cobalt and lithium. Kuniko is positioned to provide exposure to the rapidly growing European battery industry, where it seeks to facilitate European focused battery value chain solutions through the advancement of its portfolio of battery metals projects in Norway and Canada. Kuniko’s projects aim to reduce Europe’s reliance on external sources of battery metals by offering a local, ethical and sustainable sources of critical battery metals. Kuniko has a strict mandate to target carbon neutrality throughout exploration, development, and production of its projects. For more information, visit: www.kuniko.eu.
STELLANTIS FORWARD-LOOKING STATEMENTS
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Kuniko Forward Looking Statement
This announcement contains statements related to our future business and financial performance and future events or developments involving Kuniko Limited (Kuniko) that may constitute forward-looking statements. These statements may be identified by words such as “potential”, “exploitable”, “proposed open pit", “evaluation”, “expect," "future," "further," "operation, “development, "plan," "permitting”, "approvals”, “processing agreement” or words of similar meaning. Such statements are based on the current expectations and certain assumptions of Kuniko management & consultants, and are, therefore, subject to certain risks and uncertainties. A variety of factors, many of which are beyond Kuniko’s control, affect our operations, performance, business strategy and results and could cause the actual results, performance or achievements of Kuniko to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements.