Northern Ontario mining giant Vale has confirmed it has signed a long-term contract to supply Tesla with Class 1 nickel for its electric vehicles.
“This agreement is in line with our strategy to increase exposure to the electric vehicle industry, leveraging our low-carbon footprint and market-leading position as North America’s largest producer of finished nickel,” Vale said in a news release Friday.
Deshnee Naidoo, Vale’s executive vice president of base metals, said the company is pleased to partner with the leading electric vehicle manufacturer.
“This agreement reflects a shared commitment to sustainability and shows very clearly we are the supplier-of-choice for low-carbon and high purity nickel products essential for long-range batteries,” Naidoo said.
“Vale’s target is to deliver 30 per cent to 40 per cent of Class 1 nickel sales into the fast-growing electric vehicle industry,” the company added.
This comes just over a month after news that Canada is investing $2 billion in its mineral strategy for the electric vehicle battery supply chain.
In March, the Province of Ontario released its critical minerals strategy with an aim to position itself as a global supply leader.