Vale to supply GM with EV battery-grade nickel

Vale and General Motors have signed a long-term agreement that will see the mining giant supply nickel for electric car batteries. (File)

Vale and General Motors have signed a long-term agreement that will see the mining giant supply nickel for electric car batteries.

The battery-grade nickel sulfate will come from Vale's proposed plant at Bécancour, Québec. Nickel sulfate is the chemical compound used in the production of pre-cathode active materials for nickel-based lithium-ion batteries.

“This agreement secures for GM a supply of nickel sulfate from a U.S. free-trade partner to support its fast-growing EV production needs in North America,” said a news release announcing the agreement.

Under terms of the agreement, 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.

The batteries will power a range of GM’s electric vehicles, including the Chevrolet Silverado EV, Blazer EV and Equinox EV, the Cadillac LYRIQ, the GMC Sierra EV, and the GMC HUMMER EV Pickup and SUV.

“The amount of contained nickel is sufficient to supply approximately 350,000 EVs annually,” the release said.

“Deliveries are targeted to commence in the second half of 2026.”

"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," Deshnee Naidoo, Vale’s executive vice-president of base metals, said in the release.

"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.”

Doug Parks, GM executive vice-president of global product development, purchasing and supply chain, said GM’s focus is on developing a secure, sustainable and cost-competitive EV supply chain in North America.

"Their work has already allowed GM to sign multiple binding agreements to secure the battery raw material to support one million units of annual EV capacity in North America in 2025,” Parks said.

“This new agreement with Vale reinforces GM's leadership in building a secure and sustainable North America EV supply chain and will provide GM with significant supply of high-grade nickel sulfate from a low-carbon source."

"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.," he added.

Vale and GM have also agreed to study collaborative ways to develop advanced technology and commercialization pathways to harvest recycled metals.

Vale S.A.'s base metals business is one of the world's largest producers of high-quality nickel and an important producer of copper and cobalt.