Alliance Nickel’s NiWest project gains momentum with Samsung SDI offtake agreement
Alliance Nickel (ASX: AXN) has signed a non-binding term sheet with global lithium-ion battery manufacturer Samsung SDI for the offtake of battery-grade nickel and cobalt sulphate products from its NiWest project in Western Australia.
The sheet outlines a six-year binding offtake agreement that Samsung SDI will enter into pending final negotiations of definitive terms and conditions and satisfaction of customary conditions.
The start of commercial delivery will be subject to agreed conditions.
Samsung SDI is also reported to be considering the purchase of an equity stake in a company to be formed by Alliance for the purpose of holding the NiWest project.
The new company is consistent with Alliance’s commercial strategy of aligning offtake agreements and project funding.
Alliance managing director Paul Kopejtka welcomed Samsung SDI as a potential long-term strategic partner in the NiWest project.
“This term sheet is further validation of NiWest’s credentials, its strategic significance to Tier 1 automakers and battery manufacturers and the importance of the supply of specialty materials which comply with the US Inflation Reduction Act,” he said.
“Samsung SDI has an existing business relationship with our strategic partner and cornerstone investor Stellantis NV and we look forward to building a strong partnership as we move towards first production.”
Negotiation and execution of the detailed definitive agreement will be subject to due diligence and customary closing conditions, including respective company approvals.
NiWest is an advanced nickel-cobalt development located approximately 55 kilometres east of Leonora in WA’s north-eastern goldfields region.
The project’s planned processing facility will be within 30km of Glencore’s Murrin Murrin project, currently Australia’s largest nickel-cobalt operation.
NiWest is expected to produce approximately 100,000 tonnes per annum of battery-grade nickel and cobalt sulphate products for the electric vehicle market.
A definitive feasibility study for the project is well-advanced and being targeted for completion by mid-year.