Tuesday, July 16, 2024

Vale Signs Deal with Tesla To Supply Nickel from its Canadian operations for EVs batteries

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Vale SA announced that it has signed a long-term agreement with Tesla to supply nickel from its Canadian operations.

Vale did not provide details on the value of the deal and the term of the deal with Tesla.

The Brazilian mining company said in an agreement with Tesla it would provide low-carbon Class 1 nickel and in line with its strategy to increase its exposure to the electric vehicle industry.

See also: Canada budget puts billions for comprehensive investments in electromobility

Vale targets that between 30% and 40% of Class 1 nickel sales will go to the growing electric vehicle sector, without specifying how much volume it will be.

In its first quarter performance report, Vale has sold 20,000 tons of Top Grade 1 nickel in the period. A total of 1,300 tons of which goes to the electric vehicle industry.

Canadian Prime Minister Newfoundland and Labrador Andrew Furey said on Twitter the deal would cover nickel produced by Vale at its Long Harbor plant, located in the province.

According to Vale, nickel produced at the Long Harbor facility has a carbon footprint of 4.4 tonnes of CO2 equivalent for every tonne of nickel, which was previously claimed to be about a third of the Nickel Institute average for Class 1 nickel.

See also: Canada to invest $1.6 billion in minerals strategy to strengthen electric vehicle battery supply chain

Vale says on its website that such a carbon footprint makes it the “supplier of choice for the electric vehicle industry”.

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