Stellantis and NioCorp Developments Ltd recently announced the signing of a rare earth off-take term sheet. The objective is to enter a definitive rare earth supply agreement to support Stellantis’ commitment to build resilient supply chains and reach carbon net zero by 2038. Further, to help accelerate NioCorp’s path to commercial production of magnetic rare earth oxides in the United States.
The term sheet envisions a definitive agreement for a 10-year off-take contract for specific amounts of neodymium-praseodymium oxide, dysprosium oxide, and terbium oxide that NioCorp aims to produce at its Elk Creek Critical Minerals Project (the Elk Creek Project) in southeast Nebraska, subject to the receipt of adequate project financing. Final volumes would be set in a definitive agreement.
“Stellantis intends to lead the industry with the commitment to be carbon net zero by 2038 – a goal that requires innovation and a complete redefinition of our sourcing strategies,” said Stellantis chief purchasing and supply chain officer Maxime Picat. “By working with partners like NioCorp, we are taking important steps, with the aim of decarbonizing mobility and ensuring strategic supplies of raw materials necessary for the success of the company’s global electrification plans highlighted in our Dare Forward 2030 strategy.”
“We are very pleased to announce that NioCorp and Stellantis have agreed to collaboratively develop Stellantis’ magnetic rare earth supply chain, including helping to identify a sintered rare earth permanent magnet manufacturer that provides additional geographic optionality to Stellantis, in support of their ambitious commitment to reach carbon net zero by 2038,” said Mark Smith, NioCorp executive chair and CEO. “We believe that NioCorp’s position as a potential US supplier of multiple critical minerals needed for vehicle electrification offers Stellantis important optionality to secure supply chains and support its growth targets.”
As no economic analysis has been completed on the rare earth mineral resource comprising the Elk Creek Project, further studies are required before determining whether extraction of rare earth elements can be reasonably justified and is economically viable after taking account of all relevant factors.
The entrance into a binding off-take agreement is subject to the satisfactory completion of due diligence, the negotiation and settlement of final terms, the negotiation of definitive documentation, and customary closing conditions, including regulatory approvals.
Stellantis continues investments in Italy
Meanwhile, Stellantis CEO Carlos Tavares stressed recently, in a meeting held in Rome with the Minister of Enterprise and Made in Italy’s Adolfo Urso, of the company’s continuous and robust commitment to the country, one of the three roots of the company along with France and the United States.
Italy is benefiting from the size of Stellantis and its portfolio of 14 iconic brands, including Fiat, Maserati, Alfa Romeo, and Lancia, with plans to invest and build even more models for foreign brands in Italy that will contribute positively to Italy’s trade balance.
In Turin, the headquarters of Stellantis’ operations, a million-euro triple-digit investment in a brand new “grEEn-campus” will contribute to Stellantis’ bold ambition to be carbon-neutral by 2038, ahead of all other car manufacturers in the world.
The official inauguration of its battery technology center, where performance tests and validation of battery components (cells/modules/packs) will be conducted during the development and production phases, will take place within the second of the year. As part of the joint venture with Punch Powertrain, called e-Transmissions, Turin will also host an advanced facility to produce and supply innovative eDCTs for the company’s new generation of hybrid and PHEV models. The facility will become operational in early 2024.
The Turin Manufacturing District operates as a design center for electrification, the heart of design for iconic Italian brands, and a production hub for cutting-edge vehicles, such as the full-electric Fiat and Abarth 500, Maserati Levante, Quattroporte, Ghibli and the brand new GranTurismo and GranCabrio, also available in the 100% electric Folgore version—all with strong connections with all of Turin’s innovative institutions, specifically the Polytechnic University of Turin.
Across Italy, the company has launched, as part of the JV with TotalEnergie and Mercedes-Benz in the Automotive Cells Company, the project for constructing the third European Gigafactory of Stellantis at the Termoli site. Pratola Serra will be the only plant to supply the B2.2 engine for the entire range of commercial vehicles of Stellantis.
Stellantis and Toyota Motor Europe also announced the expansion of their existing partnership with an agreement to produce a new sizeable commercial vehicle with a battery electric version.
Pomigliano has seen the arrival of particularly competitive products such as the Alfa Romeo Tonale and the Dodge Hornet for the US market, which has even switched to double-shift production thanks to the success of the PHEV version. Furthermore, the Fiat Panda produced in the Campania plant continues to be a winning model, mainly thanks to the hybrid version, but it will have to deal with the Euro 7 standard.
Production and delivery of the new Maserati Grecale model has begun in Cassino, which will complete the range with the Folgore variant at the end of the year, a success that reinforces the Alfa Romeo production of Giulia and Stelvio. The Cassino plant will extend its activity to the production of vehicles based on the STLA Large flexible BEV platform. (Story and photos courtesy of Stellantis)