Nickel sulfate demand for EVs continues with Terrafame, Stellantis supply agreement

Terrafame will supply Stellantis with nickel sulfate to be used in electric vehicle batteries, starting in 2025

The five-year term of the agreement is part of Stellantis’ electrification strategy. The supply agreement will cover a significant portion of the needs for sustainable regionally sourced nickel, Stellantis said on Wednesday January 18.

“This agreement is part of the key battery material sourcing to fit with our electrified vehicle battery pack needs,” Carlos Tavares, Stellantis chief executive officer, said in a statement.

Stellantis recently announced plans to reach 100% of passenger car battery electric vehicle (BEV) sales mix in Europe and 50% passenger car and light-duty truck BEV sales mix in the United States by 2030.

The agreement comes at a time when market participants are focusing on the traceability of their metals supply chains. Terrafame said the carbon footprint of its nickel sulfate is among the smallest in the industry.

“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 decarbonizing European mobility and increasing the efficiencies of the European automotive industry,” Terrafame chief executive officer Joni Lukkaroinen said in the statement.

Nickel sulfate is a key component in nickel-manganese-cobalt (NMC) units, and nickel-rich batteries are often preferred over lithium-ion batteries due to their high energy density and longer range when used in EVs.

There has been increasing demand for pricing transparency for nickel products. Fastmarkets increased the frequency of its nickel sulfate pricing in October 2022; the prices were originally launched in April 2021.

Liquidity in the international sulfate market remains thin, with much of the material in the region also tied up in long-term contract negotiations. Fastmarkets most recently assessed the nickel sulfate premium, cif China, Japan and Korea at $1,400 per tonne on January 13.

Fastmarkets is also proposing to amend the name of its nickel mixed hydroxide-precipitate expressed price assessment and to amend the nickel content specifications to reflect the market more closely.

To keep track of all the latest developments in the nickel market, head to our dedicated nickel market page.

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