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Stellantis Signs Supply Deal for Sustainably Sourced Nickel for EV Batteries

BASF' spheres out of nickel, cobalt, and manganese salts. The first step in a process to make cathode materials. Each sphere is 10 µm in diameter 11 photos
Photo: BASF/Creative Commons License
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Stellantis has announced a partnership with Terrafame to enable the supply of sustainably-sourced nickel. The latter is essential for the manufacture of batteries for electric vehicles, which are a key part of the company's strategy going forward.
The idea is to have the ability to trace the materials that will be used to make batteries and to establish a regional sourcing method to ensure shorter supply chains. The partnership will commence in 2025, and it has been signed as an agreement for five years, which means it is meant to support Dare Forward 2030, the group's strategic plan.

The supply deal only focuses on nickel sulfate from Terrafame, a company from Finland. Stellantis will have to sign more agreements with various other companies to ensure that the batteries it installs in its EVs are sustainably sourced.

The folks at Terrafame have one of the world's largest chemical plants for EV batteries. The Finnish facility operates with an integrated production process that starts from the mine and ends with battery chemicals ready to be used in production.

The entire process at Terrafame's facility has every step traceable, so there is no question regarding the provenance of the materials used, and the resulting carbon footprint of the nickel sulfate that is produced there is among the smallest in the industry, the company claims.

According to company estimates, Terrafame can supply nickel sulfate for about one million electric vehicles per year. Unlike other firms, it works with a fully European supply chain, thus reducing the reliance on cargo ships carrying raw materials from across the world. The facility currently employs 1,500 people, but not all are direct hires.

Other automakers are focusing on the same thing these days, so we should see more announcements like this in the future. Someday, all the materials used in battery manufacturing will be sustainably sourced, but we are far from that moment, as sustainability is an issue in various other industries that could have resolved this aspect by now.

Once most of the major players in the industry begin using sustainably-sourced materials, it will become the norm, and the companies that have not adapted will have to make the switch.

Coming back to Stellantis, the firm plans to have all its passenger cars sold in Europe by 2030 be electric vehicles. Since the conglomerate also operates in the U.S. market with a considerable share of the market, it also wants to electrify its offering to reach a mix of 50 percent of its passenger cars and light duty trucks to be battery electric vehicles by 2030.

To get closer to its targets, Stellantis will invest over 30 billion euros through 2025 in electrification and software development. The latter will be done through collaborations with various other companies in the field, and it has the purpose of finding new mobility solutions, as well as enhancing the technology available in its production cars.
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Editor's note: For illustration purposes, the photo gallery shows various images of vehicles made by Stellantis.

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About the author: Sebastian Toma
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Sebastian's love for cars began at a young age. Little did he know that a career would emerge from this passion (and that it would not, sadly, involve being a professional racecar driver). In over fourteen years, he got behind the wheel of several hundred vehicles and in the offices of the most important car publications in his homeland.
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