GM, Vale Clinch Canada Nickel Supply Deal for EV Batteries

Researched by Industrial Info Resources (Sugar Land, Texas)--General Motors Company (NYSE:GM) (GM) (Detroit, Michigan) and a Canadian subsidiary of Brazilian mining giant Vale S.A.(NYSE:VALE) (Rio de Janeiro) have reached an agreement for the long-term supply of battery-grade nickel sulfate from Vale's planned plant at Becancour, Quebec, to support GM's production of electric vehicles (EVs) in North America, the companies said last week.

Vale will supply battery-grade nickel sulfate, equivalent to 25,000 metric tons per year of contained nickel, for use in GM's Ultium battery cathodes to power electric vehicles, the companies said in a joint press release. The amount of contained nickel can supply about 350,000 EVs annually. Deliveries are targeted to start in the second half of 2026.

Nickel sulfate is used in the production of pre-cathode active materials for nickel-based lithium-ion batteries.

Vale said it is North America's largest producer of finished nickel.

"This is a momentous agreement for Vale Base Metals that brings a key partner in GM into this first-of-its-kind facility for Canada and North America," said Deshnee Naidoo, Vale executive vice president of base metals. "The proposed nickel sulfate project would utilize high-purity, low-carbon nickel from our Canadian refineries and is a natural extension for the business, offering diversified sales and a fast entry and anchor point into the North American electric-vehicle market.

The nickel that Vale will be providing GM from the planned plant in Becancour will be sourced from Vale operations in Ontario, Labrador and Manitoba, according to the United Steelworkers Union, which welcomed the agreement.

Subscribers to Industrial Info's Global Market Intelligence (GMI) Metals & Minerals Project Database can click here for the Becancour project report.

In all, Industrial Info is tracking 12 nickel-related mining projects from Vale in Canada, worth US$3.61 billion. Subscribers can click here for the project reports.

Doug Parks, GM executive vice president of Global Product Development, Purchasing and Supply Chain, said GM already has signed multiple binding agreements to secure the battery raw material to support 1 million units of annual EV capacity in North America in 2025.

"In addition, Canada continues to play an important role in GM's all-electric future and the material sourced from Vale will help support EV eligibility for consumer incentives under the new clean energy tax credits in the U.S.," said Parks.

Industrial Info is tracking three GM battery cell manufacturing projects in the U.S., with a combined value of nearly US$7.5 billion. These include plants in New Carlisle, Indiana; Lansing, Michigan; and Spring Hill, Tennessee. Subscribers to Industrial Info's GMI Industrial Manufacturing Project Database can click here for project reports.

Vale, through its subsidiary Vale Canada Limited Toronto, already has signed a non-binding memorandum of understanding (MOU) with Ford Motor Company (NYSE:F) (Dearborn, Michigan) to "explore potential opportunities across the EV value chain."

Vale also has Ford as one of its partners, along with China-based Huayou Cobalt Company, to jointly develop nickel resources in Indonesia. For more information, see July 26, 2022, article - Ford Announces Mining MOUs to Support EV Batteries.

Subscribers to Industrial Info's GMI Project Database can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 Trillion (USD).