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Vale signs long-term deal to supply Tesla with nickel

SAO PAULO (CNA) – Brazilian miner Vale SA said on Friday it has signed a long-term deal with Tesla to supply the United States (US)-based electric vehicle maker with nickel from its Canadian operations.

Vale did not provide financial details on the deal and did not say how long it will last.

The Brazilian miner said in a securities filing that the agreement involves supplying Tesla with low-carbon Class 1 nickel and is in line with its strategy of increasing its exposure to the electric vehicle industry. Vale said it aims for between 30 per cent and 40 per cent of its Class 1 nickel sales to go to the fast-growing sector, without detailing how much it would represent in terms of volume.

According to the company’s first quarter performance report, Vale sold a total of 20,000 tonnes of Upper Class 1 nickel in the period, of which 1,300 tonnes were to the electric vehicle industry.

Canada’s Newfoundland and Labrador Premier Andrew Furey said on Twitter the deal would include nickel produced by Vale at its Long Harbour plant, which is located in the province.

“Congratulations to Vale on signing this significant deal with Tesla to supply the nickel the company needs to make batteries for electric vehicles,” Furey said.

“Nickel from right here in Newfoundland and Labrador. Our province is certainly rich in resources the world needs today.”