Vale signs deal with Tesla to provide Voisey's Bay nickel for electric vehicles

Vale has officially signed a supply deal with electric vehicle manufacturer Tesla, meaning nickel mined at Voisey's Bay in northern Labrador could end up in batteries forthe next generation of electric cars.

The deal was first reported by Bloombergin March, when Vale Canada announcedplans to supply nickel to Northvolt AB, a Swedish battery manufacturer and thelargest integrated battery maker in Europe.

About five per cent of nickel production in Canada already goes into electric vehicles, but Vale plans to increase its production share to between 30 and 40 per cent as it expands into the electric vehicle industry, according to a press release.

Vale wouldn't say how much the deal is worth when contacted by CBC News, declining an interview to elaborate on further details.

In an emailed statement, Vale Newfoundland and Labrador said the deal is an important partnership as they continue to pivot into the electric vehicle sector.

Vale said its low-carbon nickel will be key in the future production of electric vehicles as global demand increases.

According to the press release, rounds from Vale's nickel refinery in Long Harbourhad a verified carbon footprint of 4.4 tonnesof carbon dioxideequivalent per tonne of nickel in 2020. By comparison,pellets and powder from the Copper Cliff Nickel Refinery in Ontario had a verified footprint of 7.3 tonnes equivalent.

Emissions at Voisey's Bay are expected to rise in the short term as new underground deposits are developed, but Vale said it's necessary to reduce its greenhouse gas footprint in the long term.

In addition to Voisey's Bay, Vale also operates nickel mines in Manitoba and Ontario.

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