Volkswagen and Stellantis to invest in nickel and copper mines in Brazil

By Redação AutoIndústria | 6/12/23 | Translated by Jorge Meditsch

The perspective of constant growth of the battery demand for electric vehicles in the next years is pushing partnerships between great automotive groups, investment companies and components and raw materials suppliers.

The most recent was announced this Monday, 6/12, and involves Stellantis, Group Volkswagen’s PowerCo division, the mining company Glencore and the ACG investment fund. ACG informed that the agreement firmed previews a one-billion-dollar investment to buy two mines in Brazil.

The first one, Santa Rita, in Bahia, is considered one of the world’s largest nickel sulfide reserves. The other one, Mina Serrote, in Alagoas, could produce 50 thousand tons of copper concentrate yearly. The raw materials will be used in batteries for the two automotive groups’ products and other companies’ vehicles.

According to news agencies, Glencore will invest R$ 100 million in ACG’s stock. Stellantis and La Mancha Resource Capital investment group will invest the same amount. PowerCo will buy US$ 100 million in nickel in advance, and the other resources will come from the capital market.

Over the process, ACG will become ACG Electric Metals and issue new stock, making Glencore, Stellantis and La Mancha owners of 51% of the company and leaving 49% open.

Photography: Pixabay