By Swann Collins, investor, writer and consultant in international affairs. Eurasia Business News – May 7, 2022

Brazilian miner Vale announced that it has signed a long-term agreement on the supply of nickel with the American manufacturer of electric vehicles Tesla Inc.

The financial terms of the agreement were not disclosed.

Vale is the world’s largest producer of nickel and iron ore. The company said it plans to supply Tesla in the United States with nickel produced in Canada.

Nickel is a key element in the production of batteries used in most electric vehicles. In a statement, Vale said that the agreement is in line with the plans of the Brazilian company to increase sales of nickel in the electric vehicle market.

In March, the company also signed a multi-year agreement to supply nickel to Swedish battery maker Northvolt AB.

Vale announced in its statement that its target is to deliver 30% to 40% of Class 1 nickel sales into the fast-growing electric vehicle industry.

The five largest Nickel-producing countries in 2022 are :

  1. Indonesia. Mine production: 1 million metric tons ;
  2. Philippines. Mine production: 370,000 metric tons ;
  3. Russia. Mine production: 250,000 metric tons ;
  4. New Caledonia. Mine production: 190,000 metric tons ;
  5. Australia. Mine production: 160,000 metric tons.

The price of nickel during trading on the London Metal Exchange (LME) fell to $ 30 thousand per ton on May 5, according to data from the trading platform. The last time nickel reached this price was on March 23.

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© Copyright 2022 – Swann Collins, investor, writer and consultant in international affairs.