Multinational automaker Stellantis and Finnish firm Terrafame announced their newly signed strategic supply agreement on January 18. Stellantis states that the deal will commit Terrafame to supply the automaker with nickel sulphate within five years.
Purpose of the agreement
The partnership aims to establish a new global value chain for Stellantis, which would boost its net-zero emission target by 2038.
“We continue to build a new global value chain with Class A partners to support our global strategy and propel our commitment to be the industry champion in climate change mitigation, becoming carbon net zero by 2038, ahead of our competition.”
Carlos Tavares, Stellantis CEO
Specifically, the five-year term agreement will aid Stellantis’ proactive electrification strategy by ensuring the automaker’s supply of sustainable regionally sourced nickel by 2025.
“This agreement is part of the key raw material sourcing to fit with our electrified vehicle battery pack needs.”
Carlos Tavares, Stellantis CEO
Stellantis’ Dare Forward 2030
Stellantis aims to hit 100% sales of passenger car battery electric vehicle (BEV) mix in the European market by 2030, under the Dare Forward 2030 strategic plan. At the same time, it aims to reach 50% of sales of passenger cars and light-duty truck BEVs in the US.
To achieve that, the automaker announced plans to allocate over €30 billion until 2025 in electrification and software development.
About Terrafame
Terrafame is one of the leading battery chemical companies in Finland. Its production is exceptionally traceable due to an integrated manufacturing process that starts in its mine and ends with battery chemicals on a single industrial site.
In addition, the company’s innovative production method makes the carbon emission of its nickel sulphate one of the lowest in the market.
“Cooperation with industry leaders such as Stellantis fortifies the position of Terrafame as an important partner of battery chemicals for the European automotive 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 CEO Joni Lukkaroinen
About Stellantis
Stellantis is a Franco-Italian-American multinational automaker established in 2021 by the 50-50 merger of Fiat Chrysler Automobiles and French PSA Group. It grew to be among the top automakers in the world, with many established business units.
Notably, Stellantis aims to lead the sustainable mobility industry while developing value for the stakeholders and communities it serves.
With this supply agreement, the automaker’s electrification efforts will improve and accelerate. That said, it would not be surprising to see Stellantis excel in the EV market in the following years.
