Vale confirms supply deal with Tesla for low-carbon nickel
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Vale confirms supply deal with Tesla for low-carbon nickel
Vale notes the disclosure by Tesla Inc today and confirms it signed a long-term contract with Tesla Inc to supply Class 1 nickel in the United States from its operations in Canada. 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.
“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 some of the lowest-carbon nickel globally. Rounds from its Long Harbour refinery in Newfoundland & Labrador in 2020 had a verified carbon footprint of 4.4 tonnes CO2 equivalent 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, milling and refining as well as upstream Scope 3 emissions from inputs.
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