Vale wants to expand nickel sales for electric vehicles

With an eye on the changes that affect the automobile industry, mining company Vale intends to increase sales of nickel for the manufacture of electric car batteries In the next years.

The company’s plan takes shape with the prospect of growing demand from automakers for the metals needed to produce these vehicles, including nickel.

“Customers in this fast-growing market want high-purity, responsible sourcing nickel, and Vale is ready to supply it. percentage will increase to 30% to 40% in the coming years”, states Vale in a statement.

According to a report published by the Financial Times this Sunday (26), Vale intends to become a key supplier of battery materials for automakers such as Tesla, Ford and General Motors.

“We think we can be the choice of supplier,” said the president at Vale, Eduardo Bartolomeo, to the British newspaper. “But we need to produce. We need to increase production. This is fundamental,” he added.

The company presents itself as the world leader in the production of nickel from a responsible source. Vale reports conversations to explore possible partnerships in the area.

“As a world leader in the production and supply of responsibly sourced nickel, Vale has been engaged in stakeholder conversations [partes interessadas] at all points of the supply chain to explore partnership possibilities”, he points out.

“This is in line with Vale’s position in the market, the quality of our product and the growing demand for nickel as an essential component in the manufacture of batteries for electric vehicles”, he adds.

Over the past few months, the company has been showing greater interest in this niche. In the first half of this year, it even indicated the resumption of studies to separate its base metals operations, with the possibility of issuing shares of a new company on the Stock Exchange.

The separation of iron ore activities from base metals was already discussed by the miner in the mid-2010s, but the proposal has not evolved. With the prospect of growth in demand for these metals for the production of electric cars, the matter was once again analyzed.

In July 2020, the chief executive of electric car maker Tesla, Elon Musk, called on global miners to increase nickel production.

“Tesla will give you a giant contract for a long period if you produce nickel efficiently and in an environmentally friendly way,” Musk said at the time.

The strategy would seek to make the company not only recognized for its iron ore, but also to achieve prominence in the area of ​​metals associated with the energy transition, such as copper and nickel.