Stellantis and Terrafame Reach Agreement on Low-Carbon Nickel Sulphate Supply for EV Batteries
Stellantis N.V. and Terrafame Ltd. have signed a supply deal for nickel sulphate, which will be used in electric vehicle (EV) batteries.
Throughout the five-year arrangement, Terrafame, based in Finland, will provide Stellantis with nickel sulphate beginning in 2025. The Terrafame deal is part of Stellantis' aggressive plan to make the world more electric, and it will help the company get a lot of the nickel it needs from local, sustainable sources.
“This agreement is part of the key raw material sourcing to fit with our electrified vehicle battery pack needs,” said Stellantis CEO Carlos Tavares. "We continue to build a new global value chain with Class A partners to support our global strategy and drive our commitment to be the industry leader in fighting climate change by becoming carbon net zero by 2038, ahead of our competitors."
As part of its Dare Forward 2030 strategic plan, Stellantis said it wants to sell 100% battery electric vehicles (BEVs) for passenger cars in Europe and 50% BEVs for passenger cars and light-duty trucks in the United States by 2030.
Stellantis plans to invest more than €30 billion in electrification and software development through 2025 to give its customers clean, safe, and affordable mobility. It also wants to be 30% more efficient than the industry in terms of total capex and R&D spend versus revenues.
In Finland, Terrafame operates one of the world's largest battery chemicals plants for EV batteries. The company's production is totally traceable, with an integrated production process that begins in its own mine and ends with battery chemicals on one industrial site. Furthermore, due to its exclusive production technology, the carbon footprint of the nickel sulphate produced is among the smallest in the industry.
“Cooperation with industry leaders such as Stellantis fortifies the position of Terrafame as an important partner of battery chemicals for the European automotive industry,” said Terrafame CEO Joni Lukkaroinen. “In these challenging times, there clearly is a strong demand for sustainably and transparently produced battery chemicals that are made in Europe, for Europe. We are proud to be doing our part in decarbonising European mobility and increasing the efficiencies of the European automotive industry.”