Volkswagen and Stellantis are committing $100 million each in a $1 billion deal to create a publicly traded mining company that will produce nickel and copper from two Brazilian mines powered by hydropower. ACG Electric Metals, The mining company formed through the deal, plans to raise over $1 billion through equity, debt, and metal prepayments. Glencore, a mining giant, is investing $100 million and has agreed to process the metals into battery-grade material in Europe and North America. The transaction aims to meet the increasing demand for raw materials outside China and to qualify for government subsidies and tax credits. The deal is receiving positive investor response, with shares of the special-purpose acquisition company ACG Acquisition increasing. The transaction represents a unique collaboration between various parts of the automotive supply chain.
