GME signs MoU to supply Stellantis with raw materials to help drive its push into the EV market. Pic via Getty Images.
GME signs nickel, cobalt offtake MoU with top tier automaker Stellantis’ for EV growth
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GME Resources has received a big vote of confidence from leading automobile manufacturer Stellantis which signed a non-binding offtake memorandum of understanding.
Under the MoU, the two companies will seek to finalise a definitive agreement in relation to future offtake of battery grade nickel and cobalt sulphate products from GME’s NiWest project in Western Australia.
This is a potentially transformative deal for the previously low profile GME Resources (ASX:GME) as Stellantis is a top tier automaker which counts the Opel, Peugeot, Citroen, Fiat and Chrysler brands amongst others under its umbrella.
“Stellantis is a partner of the highest calibre and GME is delighted to have signed this MOU in what we hope is the first step in a long-term partnership,” GME managing director Paul Kopejtka said.
“We’re very pleased with how our discussions have progressed and we now look forward to entering more detailed negotiations in parallel with the start of the Definitive Feasibility Study for the NiWest Nickel-Cobalt Project.
“A Definitive Agreement with Stellantis would be a critical step in being able to progress the NiWest Project through to commercial operations.”
Stellantis chief purchasing and supply chain officer Maxime Picat added that securing raw material sources and battery supply will strengthen Stellantis’ value chain for electric vehicle battery production and help it achieve its aggressive decarbonisation target.
NiWest project
NiWest is an advanced nickel-cobalt development project near Leonora, WA, which is expected to produce about 90,000 tonnes per annum of battery grade nickel and cobalt sulphate products for the growing EV market.
More than $30m has been into drilling, metallurgical testwork and development studies to date and a Definitive Feasibility Study is due to begin this month.
The project boasts one of the highest-grade undeveloped nickel laterite resources in Australia with an Ore Reserve of 64.9Mt at 0.91% nickel and 0.06% cobalt within a broader Resource of 85.2Mt at 1.03% nickel and 0.065% cobalt.
This resource is enough to fuel a 27 year mine life with post-tax net present value – a measure of a project’s profitability – of $2.1bn under the updated Pre-Feasibility Study.
NiWest is also located just 20km from Glencore’s Murrin Murrin nickel-cobalt operation.
This article was developed in collaboration with GME Resources, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
