Vale Confirms Supply Deal with Tesla for Low-Carbon Nickel

by Eva Fox May 06, 2022

Vale Confirms Supply Deal with Tesla for Low-Carbon Nickel

Photo: @Model3Owners/Twitter

Vale confirmed a deal with Tesla to supply low-carbon nickel, which was reported by anonymous sources back in March 2022. Vale's goal is to deliver 30% to 40% of Class 1 nickel sales into the fast-growing electric vehicle industry. Tesla got access to nickel to make 4680 batteries.

Vale said in a press release that it confirms the signing of a long-term contract with Tesla to supply Class 1 nickel to its facilities in the United States from the miner's operations in Canada. The company stressed that this agreement is in line with its strategy to expand its presence in the electric vehicle industry by leveraging its low carbon footprint and market-leading position as the largest finished nickel producer in North America.

“We are pleased to have the leading electric vehicle manufacturer Tesla among our customers,” said Deshnee Naidoo, Vale’s Executive Vice President of Base Metals. “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.” Vale's target is to deliver 30% to 40% of Class 1 nickel sales into the fast-growing electric vehicle industry.

Vale's Canadian operations produce nickel with the lowest carbon content in the world. The verified carbon footprint of ore from its Long Harbour refinery in Newfoundland & Labrador in 2020 was 4.4 tonnes of CO2eq per tonne of nickel, while pellets and powder from the Copper Cliff Nickel Refinery in Ontario had a verified footprint of 7.3 tonnes equivalent. This includes Scope 1 and 2 emissions from mining, refining and processing, as well as Scope 3 emissions from inputs. Tesla's choice of Vale highlights the manufacturer's commitment to obtaining materials that have been mined with the lowest carbon footprint, in line with company policy.

© 2022, Eva Fox | Tesmanian. All rights reserved.

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Article edited by @SmokeyShorts, you can follow him on Twitter








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