Stellantis Ends Nickel-Cobalt Deal with Alliance Nickel

Stellantis announced Friday that it will end its supply deal with Australia’s Alliance Nickel Ltd. for battery-grade nickel and cobalt from the company’s NiWest project in Western Australia, effective December 3. The decision comes after delays and poor market conditions stalled progress on the mine’s development. (Source: Reuters)

Signed in 2023, the agreement had Stellantis committing to buy 170,000 tons of nickel sulphate and 12,000 tons of cobalt sulphate over five years, representing roughly 40% of NiWest’s planned output. Stellantis also acquired an 11.5% stake in Alliance Nickel as part of the deal.

Alliance said it missed key milestones due to financing challenges caused by weak nickel prices, which have remained under sustained pressure for nearly two years amid global oversupply and softer EV demand. Managing Director Paul Kopejtka said both sides may revisit the agreement later:

“This presents an opportunity for both sides to negotiate on a new agreement more reflective of the revised project timeline and forward strategy.”

Shares of Alliance fell as much as 6.4% after the announcement.

It’s the second supply deal Stellantis has canceled in Australia this week, following the automaker’s withdrawal from a graphite-supply pact with Novonix Ltd. over product-specification differences.

The move underscores how volatile raw-material markets have complicated automakers’ efforts to secure reliable EV battery supplies.