Automaker Stellantis signs battery metals offtake deal with Australia's Kuniko

Automaker Stellantis signs battery metals offtake deal with Australia’s Kuniko

July 4, 2023

By Himanshi Akhand and Rishav Chatterjee

(Reuters) – Australia’s Kuniko said on Monday it had signed an offtake and equity investment agreement with automaker Stellantis to support the development of its Norwegian battery metals projects.

Stellantis would invest 5 million euros ($5.45 million) at an issue price of A$0.467 per share in the battery metals miner in return for a near 20% stake, Kuniko said.

Kuniko shares rose as much as 58.1% to A$0.680, their highest level since Oct. 31.

Under the deal, announced by Stellantis on Friday, the carmaker will also get 35% of the nickel sulphate and cobalt sulphate produced from Kuniko’s Norway exploration projects for nine years.

Automaker Stellantis signs battery metals offtake deal with Australia's Kuniko — The logo of Stellantis is seen on a company’s building in Velizy-Villacoublay near Paris, France, February 23, 2022. REUTERS/Gonzalo Fuentes/File Photo

The funds from the Stellantis’ equity investment will be used to advance Kuniko’s brownfield and greenfield battery metals exploration projects in Norway, the company said.

($1 = 0.9168 euros)