By Michael Elkins
Stellantis (NYSE:STLA) announced Wednesday that the American vehicle maker has struck a deal with Finnish battery chemical supply company, Terrafame for nickel sulphate. Terrafame will supply Stellantis with nickel sulphate over a five-year period, starting from 2025 onwards.
"This agreement is part of the key raw material sourcing to fit with our electrified vehicle battery pack needs,” Stellantis Chief Executive Carlos Tavares said in a statement.
Stellantis is one of the largest carmakers in the world and includes brands such as Peugeot, Fiat, Chrysler and Jeep. The company is currently aiming to have a 100% battery electric vehicle catalog in Europe and 50% in the U.S. by 2023.
The carmaker said the agreement with Terrafame "will cover a significant portion of the needs for sustainable regionally sourced nickel."
Last week, Stellantis struck a deal with Australian miner Element 25 for the supply of manganese sulphite.
Shares of STLA are down 0.45% in mid-day trading on Wednesday.