Published on 02.12.2022 at 15.00
Terrafame and Renault Group agree on long-term supply of sustainable nickel sulphate
Terrafame and Renault Group have signed a multi-year agreement for the supply of low-carbon and fully traceable nickel sulphate for electric vehicle (EV) batteries. Terrafame and Renault Group have been developing their cooperation since October 2021 when the two companies signed a Memorandum of Understanding (MoU).
With the agreement, Renault Group will secure a significant supply of sustainably produced nickel sulphate from Terrafame, sufficient for more than 200,000 EV’s annually. For Terrafame, the partnership is an important milestone as a recognized partner of low-carbon and fully traceable electric vehicle production. The partnership is also a concrete step towards a well-structured, transparent, and sustainable European battery cluster.
Joni Lukkaroinen, CEO of Terrafame: “The long-term partnership with Renault fortifies the position of Terrafame as an important partner of battery chemicals for the European automotive industry. In these challenging times, there clearly is a strong demand for sustainably and transparently produced battery chemicals that are made in Europe, for Europe. With the agreement, Terrafame commits to supplying nickel sulphate for over 200,000 EVs annually. We are proud to be doing our part in decarbonizing European mobility and increasing the efficiencies of the European automotive industry”.
The direct partnership between a leading OEM manufacturer such as Renault Group and an operator focused on upstream production like Terrafame is a game-changer in the battery materials value chain. Terrafame’s bioleaching-based production process uses about 90% less energy in the production of nickel sulphate than the industry average. In addition, Terrafame’s integrated production process begins and ends on one industrial site from a mine to battery chemicals production. These unique and energy-efficient features enable full transparency throughout the entire value chain. Apart from the detailed metrics, a commitment over the entire supply chain simplifies risk management and pricing mechanisms for all parties involved.
Joni Lukkaroinen, CEO of Terrafame Ltd, tel. +358 20 713 0890, joni.lukkaroinen[at]terrafame.fi
Further information about the companies:
Terrafame reduces the carbon footprint of transport by delivering responsibly produced battery chemicals to the global battery industry. One of the world’s largest production lines for chemicals used in electric car batteries is located on Terrafame’s industrial site. The plant is capable of producing nickel sulphate for around 1 million electric cars per year. The carbon footprint of the nickel sulphate produced by Terrafame is among the smallest in the industry.
Terrafame’s integrated, unique and energy-efficient production process from the mine to battery chemicals is located on a single industrial site. It provides customers with a transparent, traceable and truly European battery chemical supply chain.
Terrafame Ltd was founded in 2015. Its net sales in 2021 were EUR 378 million. Around 1,500 people work on its industrial site, half of whom are employees of partner companies.
Renault Group is at the forefront of reinventing mobility. Backed by its alliance with Nissan and Mitsubishi Motors, and its unique expertise in terms of electrification, Renault Group draws on the complementary nature of its four brands - Renault - Dacia - Alpine and Mobilize - to offer its customers sustainable and innovative mobility solutions. With operations in more than 130 countries, the Group sold 2.7 million vehicles in 2021. It employs nearly 111,000 people who embody its raison d'être on a daily basis, so that mobility brings us closer to one another. Ready to take up challenges on the road as well as in competition, the Group is committed to an ambitious and value-generating transformation. This is centred on the development of new technologies and services, and a new range of even more competitive, balanced and electrified vehicles. In line with environmental challenges, Renault Group's ambition is to achieve carbon neutrality in Europe by 2040.