Alliance Nickel Faces Project Delays as Stellantis Terminates Offtake Agreement

• Stellantis terminates binding offtake agreement effective December 3, 2025
• Termination due to missed contractual milestones amid nickel market and financing challenges
• Stellantis remains interested in Alliance’s NiWest Nickel-Cobalt Project
• Alliance exploring strategic alternatives including potential Nasdaq SPAC listing
• Renegotiation of offtake terms underway reflecting revised project timeline

Background and Termination

Alliance Nickel Ltd (ASX – AXN) has announced that Stellantis N.V., the global automotive giant, has formally terminated their binding offtake agreement effective December 3, 2025. The original agreement, inked in May 2023, was designed to secure supply of nickel and cobalt from Alliance’s NiWest project. However, challenging market conditions and difficulties in securing project financing led to missed contractual milestones, rendering the agreement inoperative.

Market Pressures and Project Delays

The nickel market has faced significant pricing pressure over the past two years, impacting the viability and timing of new mining projects worldwide. For Alliance, this environment has forced a deferment of development activities at NiWest, as the company seeks more favourable financing terms. These delays directly contributed to the failure to meet the milestones stipulated in the Stellantis contract.

Renegotiation and Strategic Outlook

Despite the termination, Stellantis has expressed continued interest in the NiWest Nickel-Cobalt Project and is open to renegotiating the offtake terms. This willingness suggests both parties see long-term value in the partnership, albeit under revised timelines and market realities. Alliance’s Managing Director Paul Kopejtka emphasised optimism about nickel and cobalt’s future demand, highlighting the opportunity to craft a new agreement aligned with current conditions.

Broader Strategic Moves

In parallel with renegotiation efforts, Alliance is actively exploring strategic alternatives to strengthen its financial position. Notably, the company is considering a Special Purpose Acquisition Company (SPAC) transaction that could lead to a Nasdaq listing, potentially unlocking new capital and investor interest. This move signals Alliance’s intent to adapt and position itself for growth despite near-term challenges.

Investor Implications

The termination and renegotiation of a major offtake agreement is a material development for investors, reflecting both the volatility of the nickel market and the complexities of project financing. While the immediate outlook includes uncertainty, the ongoing dialogue with Stellantis and strategic initiatives like the SPAC exploration provide potential pathways to value creation.

Bottom Line?

Alliance’s next moves on renegotiation and financing will be pivotal in navigating nickel’s turbulent market and securing project viability.

Questions in the middle?

• What revised terms might Stellantis propose in the renegotiated offtake agreement?
• How will the potential Nasdaq SPAC listing impact Alliance’s capital structure and project funding?
• What timeline does Alliance foresee for resuming full development at NiWest amid current market conditions?