Stellantis scraps offtake deal with Alliance Nickel but willing to renegotiate

Core Viewpoint - Stellantis is terminating its binding offtake deal with Alliance Nickel due to unfulfilled milestones, effective December 3, while expressing interest in renegotiating terms that align with the revised project timeline and market conditions [1][2]. Group 1: Termination of Offtake Agreement - The termination of the offtake agreement is attributed to missed milestone dates, rendering the existing contract "inoperative" [1]. - The missed milestones are primarily due to subdued nickel market conditions, which have complicated project financing [3]. Group 2: Future Negotiations and Market Conditions - Despite the termination, Stellantis remains interested in the NiWest Project and is open to renegotiating the offtake terms [2]. - The nickel market has faced pressure for the past two years, impacting funding for new nickel ventures globally [3]. Group 3: Strategic Options and Company Developments - Alliance Nickel is considering strategic options, including a potential SPAC transaction that could lead to a Nasdaq listing [4]. - The original supply agreement included the delivery of 170,000 tons of nickel sulfate and 12,000 tons of cobalt sulfate over five years, representing about 40% of the NiWest project's estimated annual output [5]. Group 4: Equity Subscription and Related Deals - The deal also involved a €9.2 million equity subscription by Stellantis for an 11.5% stake in Alliance Nickel [6]. - Recently, Stellantis also canceled an offtake deal with Novonix due to disagreements on product specifications and qualification milestones [6].