The maker of Jeep SUVs, Ram pickup trucks and other vehicles on Wednesday said it has signed a supply agreement to secure nickel sulphate for electric vehicle batteries.
Finland-based Terrafame Ltd. will begin supplying Stellantis NV the minerals in 2025 for the five-year term of the agreement. In a news release, the automaker said the deal "will cover a significant portion of the needs for sustainable regionally sourced nickel" in the company's pivot toward zero-emission vehicles.
"This agreement is part of the key raw material sourcing to fit with our electrified vehicle battery pack needs," Stellantis CEO Carlos Tavares said in a statement. "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."
Terrafame operates one of the world's largest battery chemicals plants for EV batteries in Finland, whose carbon footprint is among the smallest in the industry, according to the news release. It includes its own mine and production process so that the minerals' origins are fully traceable in an environment where there are concerns around ethical sourcing of EV battery materials.
"Cooperation with industry leaders such as Stellantis fortifies the position of Terrafame as an important partner of battery chemicals for the European automotive industry," Terrafame CEO Joni Lukkaroinen said in a statement. "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."
The agreement comes after Stellantis last week announced an agreement to source manganese sulphate from Australia starting in 2026. Stellantis also has secured deals for lithium volumes for EV batteries that will go in cars, SUVs and trucks in North America and Europe.
The automaker has said it will produce two types of EV batteries, including a nickel-based option that would provide longer range. It also is working on a lithium iron phosphate option, which has been hailed as safer, though less energy-dense.
Stellantis has announced five battery plants, including three of these gigafactories in Europe. The two in North America will be in Windsor, Ontario, starting next year with LG Energy Solution and in Kokomo, Indiana, starting in 2025 with Samsung SDI. The company also expects it'll need a third to begin production in 2026 and plans to announce its location early this year.
Stellantis is investing $35.5 billion in electrification and software by 2025. It expects more than half of sales in the United States and 100% in Europe to be all-electric by 2030.
