Stellantis Offtake Exit and Market Headwinds Cloud NiWest’s Development Path

NiWest Project – A Robust Asset in a Challenging Market

Alliance Nickel Limited (ASX – AXN) provided a comprehensive update at its 2025 Annual General Meeting, reaffirming the NiWest Nickel-Cobalt Project’s technical robustness and commercial appeal. The Definitive Feasibility Study (DFS) completed in late 2024 underlined the project’s low-cost production profile and strong environmental, social, and governance (ESG) credentials, key differentiators in today’s critical minerals landscape.

Despite these strengths, the company has faced delays in advancing early-stage project implementation, largely due to subdued nickel market conditions that have complicated debt financing and equity raising efforts. These headwinds have necessitated a patient and strategic approach to development.

Stellantis Relationship – From Offtake Termination to Renewed Negotiations

A notable development was Stellantis’ formal notice to terminate the existing offtake agreement, citing delays in production milestones. While this represents a setback, Stellantis remains a significant shareholder with an 11.5% stake and continues to support the project strategically, including board representation through Klervi Ménahèze. Alliance plans to renegotiate a new, more timeline-aligned offtake agreement, reflecting the evolving project realities and market environment.

Strategic Pivot – Pursuing Nasdaq Listing via SPAC

In a bid to overcome capital market challenges and tap into the premium valuations afforded to critical minerals projects in the US, Alliance has appointed Cohen & Company Capital Markets and Welsbach Corporate Solutions as financial advisors to explore a Special Purpose Acquisition Company (SPAC) transaction. This move aims to secure a Nasdaq listing, opening access to deeper equity pools aligned with the US-Australia bilateral framework on critical minerals signed earlier this year.

This strategic pivot aligns NiWest with the growing US demand for battery-grade nickel and cobalt, particularly as the project is positioned to supply refined materials to emerging gigafactories such as the StarPlus Energy joint venture in Indiana, backed by Stellantis and Samsung SDI.

Support and Outlook Amid Uncertainties

Alliance has also benefited from financial support from major shareholder Zeta Resources and board members through loans, underscoring internal confidence in NiWest’s long-term value. The project enjoys Major Project Status and benefits from streamlined regulatory processes, with environmental and heritage approvals well advanced.

Looking ahead, Alliance remains optimistic about nickel’s long-term demand trajectory, driven by global electrification and electric vehicle adoption. The company is focused on executing a development pathway that maximizes shareholder value while navigating the complexities of market timing, financing, and strategic partnerships.