The fact that the most recent round of US electric vehicle subsidies will not encourage reliance on China for battery materials was one of the main criticisms leveled at it.
Some claimed that mandating that battery components must come from friendly nations (or, more precisely, from “foreign entities of concern”) would impede the adoption of EVs or increase sales of PHEVs. The criterion would be challenging to meet for a large battery required for battery-electric vehicles, but not too challenging for a small battery built into a plugin hybrid. By providing users with a convenient way to subsidize their gasoline and diesel automobiles, they may install a small $1,000 or $2,000 battery in a car and earn a significant $7,500 discount.
Others noted that supplies without creating geopolitical issues are essential for the future of the EV. There is no disputing that China’s monopolistic control over a number of essential minerals required for batteries poses a financial threat to the stagnant growth of both the electric vehicle sector and global economic security. We are all too acquainted, for instance, with what happens when the oil market is disturbed; oil is a resource that is pumped and refined in numerous nations. A much bigger issue arises from China’s total dominance over battery-grade synthetic graphite, as well as its 73% control over cobalt, 68% control over nickel, and 59% control over lithium.
News of a recent agreement Stellantis reached is crucial because of this. Through a legally binding Memorandum of Understanding, Stellantis and GME Resources Limited have agreed to sell quantities of battery-grade nickel and cobalt sulphate products from the NiWest Nickel-Cobalt Project in Western Australia. Even if Americans may not share all of Australia’s views, we are confident that they won’t use their access to battery supplies as leverage to force concessions from other free nations.
For the expanding electric vehicle industry, the NiWest project, a nickel-cobalt development company, will generate up to 90,000 tpa (tons per annum) of battery-grade nickel and cobalt sulphate. Drilling, metallurgical testing, and development studies have already cost more than AU$30 million. The processing plant for NiWest is expected to be built about 30 kilometers from Glencore’s Murrin Murrin business, which is now Australia’s biggest nickel-cobalt operation.
Maxime Picat, Chief Purchasing and Supply Chain Officer at Stellantis, stated, “Stellantis is aiming to provide our clients with clean, safe, economical, cutting-edge freedom of mobility every day. “Securing the raw material sources and battery supply would improve Stellantis’ value chain for producing the batteries for electric vehicles and, as important, enable the Company reach its ambitious decarbonization target,” the company said.
By 2030, Stellantis aims to sell 100% of passenger battery-electric vehicles (BEVs) in Europe and 50% of BEVs for light-duty trucks and passenger automobiles in the US. The business also wants to reduce carbon emissions by 50% by 2030 and reach carbon net zero by 2038. This program is known as Dare Forward 2030.
Paul Kopejtka, the managing director of GME, said, “Stellantis is a partner of the highest level, and GME is happy to have signed this MOU in what we hope is the first step in a long-term cooperation. “We’re delighted with how our discussions have gone so far, and we now look forward to moving forward with additional in-depth negotiations concurrent with the beginning of the NiWest Nickel-Cobalt Project’s Definitive Feasibility Study. The NiWest Project must advance to commercial operations, and that requires reaching a Definitive Agreement with Stellantis.
They have agreements with other amiable providers in addition to this one. Additionally, earlier this year, Stellantis acquired a sizeable supply of low-carbon lithium hydroxide from Controlled Thermal Resources and Vulcan Energy, located in North America and Europe, respectively. It follows that Stellantis places a premium on obtaining supplies that are eligible for tax benefits by doing business with superior suppliers.
Stellantis donated the featured image.
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