Stellantis is terminating its binding offtake deal with Alliance Nickel for nickel and cobalt from the NiWest project in Western Australia over unfulfilled milestones.
The termination will take effect on December 3.
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According to Alliance, the contract termination stems from certain milestone dates not being met, making the existing agreement “inoperative”.
The company attributed the missed milestones chiefly to subdued nickel market conditions and the resulting difficulties in securing project financing.
Despite the termination, Alliance said Stellantis remains interested in the NiWest Project and has signalled a willingness to renegotiate offtake terms that would better align with a revised project development timetable and current market dynamics.
Alliance said it will provide further updates as discussions with Stellantis progress.
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By GlobalDataThe company highlighted the nickel rout, noting the commodity’s prices have been under pressure for the past two years, a trend that has constrained funding for new nickel ventures worldwide.
Those conditions have forced the company to delay project development while it seeks suitable financing arrangements aimed at delivering shareholder value.
The company added it is weighing strategic options, including a potential special purpose acquisition company (SPAC) transaction, which could lead to a Nasdaq listing.
Alliance managing director Paul Kopejtka said: “We understand the rationale for the Stellantis decision, and at the same time we recognise that this presents a good opportunity for both sides to negotiate on a new agreement which is more reflective of the revised project development timeline and forward strategy. I firmly believe that the long-term outlook for nickel and cobalt remains positive”
Stellantis and Alliance entered the supply agreement in 2023 for the delivery of 170,000t of nickel sulphate and 12,000t of cobalt sulphate over an initial five‑year term. That volume equated to roughly 40% of the NiWest project’s estimated annual output.
The deal also included a €9.2m equity subscription by Stellantis for an 11.5% stake in Alliance Nickel.
Earlier this week, FCA US, a Stellantis subsidiary, cancelled its offtake deal with Novonix after the parties failed to agree on battery cell product specifications and mass‑production qualification milestones.
