Alliance Nickel has announced it has signed a non-binding term sheet with a leading global lithium-ion battery manufacturer for future offtake of battery-grade nickel and cobalt sulphate products from a Western Australian nickel-cobalt project.
The term sheet outlines the general terms pursuant to which Samsung SDI will, subject to final negotiations of the definitive terms and conditions and satisfaction of customary conditions, enter into a binding offtake agreement for an initial period of six years for the NiWest Nickel-Cobalt Project.
The start of commercial delivery will be subject to agreed conditions.
The non-binding term sheet also provides that Samsung SDI and Alliance will discuss a potential acquisition by Samsung SDI of an equity interest in a project company to be formed by Alliance that will hold the NiWest Project.
This approach is consistent with Alliance’s commercial strategy of aligning offtake agreements and project funding, to the extent commercially feasible and acceptable to the counterparty.
NiWest is an advanced nickel-cobalt development project located approximately 55km east of Leonora in the northeastern Goldfields region of Western Australia.
The proposed location of the processing facility for NiWest is within approximately 30km of Glencore’s Murrin Murrin operation, the largest nickel-cobalt operation in Australia.
The project is expected to produce approximately 100,000tpa of battery grade nickel and cobalt sulphate products for the electric vehicle market. A Definitive Feasibility Study for NiWest is well advanced and targeting completion mid-2024.
Alliance Managing Director and CEO, Paul Kopejtka, said, “We are delighted to introduce Samsung SDI as a new potential long term strategic partner in the NiWest Project, particularly given the current challenging market conditions facing the critical minerals sector.”
Mr Kopejtka said that the term sheet is further validation of the credentials of the NiWest Project, its strategic significance to tier one automakers and battery manufacturers and the importance of the supply of specialty materials that comply with the US Inflation Reduction Act.
“Samsung SDI has an existing business relationship with our strategic partner and cornerstone investor, Stellantis N.V. and we look forward to building a strong partnership as we move towards first production from NiWest.”
Negotiation and execution of the detailed definitive agreement is subject to due diligence and customary closing conditions, including respective company approvals.
