After months of speculation, Vale has confirmed that it has signed a deal with electric vehicle maker Tesla for the supply of low-carbon nickel.
Premier Andrew Furey tweeted out the news Friday, offering his congratulations to Vale on signing the “significant deal.”
Congratulations to @valeglobal on signing this significant deal with @Tesla to supply the nickel the company needs to make batteries for electric vehicles. Nickel from right here in Newfoundland and Labrador. Our province is certainly rich in resources the world needs today.
— Andrew Furey (@FureyAndrew) May 6, 2022
Tesla’s Elon Musk had previously expressed interest in sourcing ethically and environmentally sensitive nickel for the manufacture of electric car batteries.
Vale confirms it signed a long-term contract with Tesla to supply Class 1 nickel in the United States from its operations in Canada. Vale operates a nickel mine at Voisey’s Bay.
Vale’s Canadian mines produced approximately 76,000 tonnes of nickel last year. The company’s target is to deliver 30 to 40 per cent of Class 1 nickel into the electric vehicle industry.
According to the company, rounds from its Long Harbour refinery had a verified carbon footprint of 4.4 tonnes CO2 equivalent per tonne of nickel while pellets and power from the Copper Cliff Nickel Refinery in Ontario was 7.3 tonnes equivalent.
