Daily Management Review

Tesla agrees to buy nickel from Brazilian Vale


Tesla signed a long-term contract with Brazilian mining company Vale to supply nickel. It is used in batteries of electric cars.

Jeso Carneiro
Jeso Carneiro
Brazilian mining company Vale has signed a long-term contract with Tesla for the supply of grade 1 nickel (with almost 100% metal content). This is according to a statement on Vale's website. It did not disclose the financial terms of the deal, the length of the contract and other terms.

Vale said only that it would supply the United States with metal from its production facilities in Canada. It produced 76,000 tons of the metal there in 2021, the Financial Times reported. Nickel is one of the components of the most powerful lithium-ion batteries used in electric cars, the newspaper noted.

The deal with Vale is another move by Tesla to increase supplies from partners not affiliated with China, the Financial Times said. Analysts estimate that more than 80% of the world's nickel production is now based in China, and 60% of the world's deposits are owned by Chinese companies.

source: ft.com