Recently, metals refiner Westwin Elements and commodities trader Traxys announced an amended agreement to extend their existing mixed hydroxide precipitate (MHP) feedstock supply and nickel offtake arrangements for up to 22 years. Based on current market prices, if the agreement is executed for the full term, the nickel offtake component alone could represent a transaction value of approximately US $3.96 billion.
The agreement provides Westwin with long-term feedstock and sales guarantees as it expands its US domestic production capacity, helping to reduce commercial risk. Westwin is currently planning to build the first commercial-scale Class 1 nickel refinery in the US in Natchez, Mississippi, to strengthen the domestic US nickel supply chain. Both Westwin CEO KaLeigh Long and Traxys CEO Mark Kristoff stated that this long-term extension will strongly support the security of the US critical materials supply chain and the expansion of domestic nickel production.
