Vale has signed a long-term contract with Tesla Inc. to supply Class 1 nickel to the US from its operations in Canada.
This agreement is in line with the company’s strategy to increase exposure to the electric vehicle industry, leveraging its low-carbon footprint and position as North America’s largest producer of finished nickel.
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 and Labrador in 2020 had a verified carbon footprint of 4.4 t 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 t equivalent. This includes Scope 1 and 2 emissions from mining, milling, and refining as well as upstream Scope 3 emissions from inputs.