【Ferro-alloys.com】: Australian metals miner Alliance Nickel said on Friday that automaker Stellantis had terminated its binding offtake agreement for nickel and cobalt from the NiWest project in Western Australia, citing missed contractual milestones linked to challenging market conditions.

The termination would take effect on December 3, ending the supply deal announced in May 2023. Alliance said the existing agreement had become “inoperative” as falling nickel prices and tighter financing conditions delayed project development.

Despite the termination, Stellantis has expressed interest in renegotiating new terms aligned with NiWest’s revised development timeline and current market realities.

“We understand the rationale for the Stellantis decision, and at the same time we recognise that this presents a good opportunity for both sides to negotiate on a new agreement which is more reflective of the revised project development timeline and forward strategy,” said MD Paul Kopejtka.

“I firmly believe that the long-term outlook for nickel and cobalt remains positive.”

Nickel prices have fallen sharply over the past two years, pressuring developers and complicating financing for new supply projects worldwide. Alliance said these conditions had forced it to defer project development activities while it sought funding “on terms that deliver value to shareholders".

The company is exploring strategic options, including a potential special purpose acquisition company transaction that could see it list on the Nasdaq, according to an earlier statement on October 28.

Alliance’s NiWest nickel/cobalt project, located near Leonora, is one of the country’s largest undeveloped battery metals projects, targeting production of high-purity nickel and cobalt for the electric vehicle market. 

• [Editor:Alakay]