News: AXN Stellantis signs deal with Kuniko for supply of battery materials

MILAN, June 30 (Reuters) - Stellantis STLAM.MI has signed an offtake and equity investment agreement with Australia-listed Kuniko (KNI) , the latest of a string of deals aiming to give the carmaker stable supply of key materials for vehicle batteries.

Based on the binding agreement, the Franco-Italian automaker will get 35% of future production of battery-grade nickel sulphate and cobalt sulphate from Kuniko's exploration projects in Norway, for nine years, the two companies said on Friday in a joint statement.

Stellantis also agreed to buy new shares in Kuniko worth 5 million euros ($5.4 million), giving it a 19.99% stake in the company and the power to appoint one board member, they added.

The funds provided by Stellantis will help support Kuniko's brownfield and greenfield battery metals exploration projects in Norway, which include nickel, cobalt and copper.

Stellantis' Chief Purchasing and Supply Chain Officer Maxime Picat said the world's third largest carmaker by sales was on an "aggressive path" to securing raw materials needed to meet its electrification targets.

"With Kuniko, we are adding another lever to support our European battery needs with a local and environmentally conscious solution from its Norwegian projects," he said.

Since its creation in early 2021 through the merger of Fiat Chrysler and Peugeot maker PSA, Stellantis has lined up supply agreements for materials needed for electric vehicle production with Alliance Nickel (AXN) , McEwen Copper MUX.TO , Terrafame, Vulcan Energy (VUL) , Element 25 (E25) and Controlled Thermal Resources.

The completion of the offtake agreement and of the share subscription with Kuniko are subject to conditions, including regulatory approvals, the two companies said. ($1 = 0.9202 euros)