Stellantis is ending its binding offtake deal with Alliance Nickel for nickel and cobalt from the NiWest project in Western Australia due to unmet milestones, effective December 3. The termination is attributed to subdued nickel market conditions and financing challenges. Alliance is open to renegotiating terms with Stellantis.

Alliance is exploring strategic options, including a potential SPAC transaction for a Nasdaq listing. Managing director Paul Kopejtka sees an opportunity to negotiate a new agreement reflective of the project’s timeline and strategy. Stellantis and Alliance initially agreed to deliver 170,000t of nickel sulphate and 12,000t of cobalt sulphate over five years.

Earlier, FCA US, a Stellantis subsidiary, cancelled its offtake deal with Novonix over battery cell product specifications. Stellantis remains open to renegotiation with Alliance despite the termination. The long-term outlook for nickel and cobalt is seen as positive amid challenging market conditions.

Read more at Yahoo Finance: Stellantis scraps offtake deal with Alliance Nickel but willing to renegotiate