(Vale) Vale has agreed a deal to sell Class 1 low-carbon nickel to electric car maker Tesla from its Canada’s operations.
Vale says it targets to deliver 30% to 40% of Class 1 nickel to the EV maker.
The company says the supply deal is in line with its strategy for more exposure into the EV industry while leveraging on its low-carbon footprint.
The deal with Tesla comes at a time Vale’s CEO Eduardo Bartolomeo faces pressure to improve the underperforming metals division. The company is also seeking to position it as the supply of choice by US EV makers.
Vale’s head of base metals division Deshnee Naidoo lauded the deal, saying he is pleased to count top EV maker Tesla as one of its customers.
The deal comes after Tesla’s CEO identified nickel supply as one of the greatest challenges the company faces amid a price jump for other metals such as lithium.
The price of nickel has increased almost 50% this year to hit $30,000 a ton. It, in March, reached $100,000 a ton following the Russian invasion of Ukraine.
VALE: NYSE is down -0.19%, TSLA: NASDAQ is up +1.08%
