This image, from July 2021, shows a Citroen e-C4 electric vehicle on display at a showroom in Paris, France. Citroen is a brand of Stellantis, one in all the world’s biggest automakers.
Benjamin Girette | Bloomberg | Getty Images
Stellantis is popping to Australia because it looks to acquire the materials needed for its electric vehicle strategy within the years ahead.
On Monday, the automaker said a non-binding memorandum of understanding related to the “future sale of quantities of battery grade nickel and cobalt sulphate products” had been signed with Sydney-listed GME Resources Limited.
In accordance with Stellantis, the MoU is centered around materials sourced from the NiWest Nickel-Cobalt Project, which has been earmarked for development in Western Australia.
In a press release, the firm described NiWest as an operation that may produce around 90,000 tons of “battery grade nickel and cobalt sulphate” for the EV market annually.
Stellantis said that, thus far, over 30 million Australian dollars (around $18.95 million) had been “invested into drilling, metallurgical test work and development studies.” A definitive feasibility study for the project is resulting from begin this month.
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In its statement Monday, Stellantis — whose brands include Fiat, Chrysler and Citroen — referenced its goal of all passenger sales in Europe being battery electric by the yr 2030. Within the U.S., it wants a “50% passenger automotive and light-duty truck BEV sales mix” inside the same timeframe.
“Securing the raw material sources and battery supply will strengthen Stellantis’ value chain for electric vehicle battery production,” Maxime Picat, chief purchasing and provide chain officer at Stellantis, said.
Stellantis’ electric vehicle plans put it in competition with firms akin to Elon Musk’s Tesla in addition to firms like Volkswagen, Ford and GM.
In accordance with the International Energy Agency, electric vehicle sales are heading in the right direction to hit an all-time high this yr. The sector’s expansion and other aspects are creating pressure points in relation to the provision of the batteries crucial for EVs.
“The rapid increase in EV sales throughout the pandemic has tested the resilience of battery supply chains, and Russia’s war in Ukraine has further exacerbated the challenge,” the IEA notes, adding that prices of materials like lithium, cobalt and nickel “have surged.”
“In May 2022, lithium prices were over seven times higher than at first of 2021,” it adds. “Unprecedented battery demand and a scarcity of structural investment in latest supply capability are key aspects.”
In April, the CEO and president of Volvo Cars predicted that scarcity of battery supply would change into a pressing issue for his sector, telling CNBC the firm had made investments that may help it gain a foothold available in the market.
“Recently, we made a fairly substantial investment with Northvolt, in order that we’re accountable for our own battery supply as we go forward,” Jim Rowan told CNBC’s “Squawk Box Europe”.
“I believe battery supply goes to be one in all the things that comes into scarce supply within the years to come back,” Rowan added.
“And that is one in all the explanations we made that substantial investment with Northvolt: In order that we will be on top of things not only of the provision, but we will actually begin to develop our own battery chemistry and production facilities.”
Renault’s charging plans
Monday also saw Mobilize, a brand of the Renault Group, announce plans to roll out an ultra-fast charging network for EVs within the European market. Mobilize Fast Charge, because it’s known, will consist of 200 sites in Europe by the center of 2024 and “be open to all electric vehicles.”
The event of adequate charging options is seen as being crucial in relation to difficult perceptions surrounding range anxiety, a term that refers to the concept electric vehicles aren’t in a position to undertake long journeys without losing power and getting stranded.
In accordance with Mobilize, the network in Europe will enable drivers to charge their vehicles 24 hours a day, seven days per week. “A lot of the stations will likely be at Renault dealerships lower than 5 minutes from a motorway or expressway exit,” it added.
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