Alliance Nickel Ltd (ASX: AXN), a company focused on developing the NiWest Nickel-Cobalt Project, has announced that Stellantis N.V. has provided notice of termination for their binding offtake agreement, effective December 3, 2025. The termination stems from the non-fulfilment of certain contractual milestone dates, rendering the existing agreement inoperative. The primary cause is attributed to challenging nickel market conditions and related project financing constraints.
Despite the termination, Stellantis has conveyed its continued interest in Alliance’s NiWest Nickel-Cobalt Project. The automotive manufacturer has expressed a willingness to renegotiate offtake terms to better align with the revised project development timeline and current market conditions. Alliance Nickel intends to keep the market informed as these discussions progress.
The prevailing nickel market has faced significant pricing pressure over the past two years, creating a difficult funding environment for new nickel projects globally. These adverse market conditions have prompted Alliance to defer project development activities while the company actively seeks suitable project financing on terms that will benefit shareholders. As part of its strategic review, Alliance is exploring alternatives, including a potential Special Purpose Acquisition Company (SPAC) transaction that could lead to a Nasdaq listing.
Alliance Managing Director Paul Kopejtka acknowledged the rationale behind Stellantis’s decision and views it as an opportunity for both parties to negotiate a new agreement reflecting the revised project timeline and future strategy. Kopejtka remains optimistic about the long-term outlook for nickel and cobalt. The company will continue to update the market as negotiations with Stellantis advance and as strategic alternatives are explored.