Brazilian mining giant Vale SA will supply General Motors Co with battery-grade nickel for future electric vehicles starting in 2026, the companies said on Thursday.
Under a long-term contract, Vale Canada will supply GM with battery-grade nickel sulfate, a key component of electric vehicle battery cathodes, from a proposed plant in Becancour, Quebec.
The deal with Vale is the latest in a series of GM deals aimed at locking up supplies of critical battery minerals as the automaker ramps up the production of electric cars in 2025 and beyond.
GM has said it can build one million electric cars in North America by 2025 and has signed contracts with at least 20 battery materials companies to supply those vehicles.
Vale’s contract, which starts in the second half of 2026, will supply GM with enough refined nickel for up to 350,000 electric cars a year.
More importantly, Vale’s Canadian nickel “will help support the eligibility of electric vehicles for consumer incentives under the new US clean energy tax credits,” said Doug Parks, GM’s vice president of global product development, procurement, and supply chain.
The American Inflation Reduction Act links up to $3,750 in federal tax credits per vehicle to requirements that electric vehicle batteries be manufactured in North America using materials originating in North America or related countries.
GM and Vale also plan to explore battery recycling.
Vale has current contracts to supply nickel to Tesla and Ford Motor Co., as well as Swedish battery company Northvolt.
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