Both Vale and Tesla are interested in a mutual agreement. The electric car manufacturer needs to ensure a stable and long-term supply of nickel for batteries, but it is also looking for a supplier that will mine nickel in an environmentally friendly manner.
It is the ecological aspect that is a key factor for Elon Musk himself. As early as this June, he said he would offer a giant long-term contract to those who would meet the condition of a gentle way of mining. The Brazilian company Vale SA is said to be able to comply with this requirement, since it has nickel deposits directly in Canada, and thus its possible supply to Tesla would not burden the environment as much as it would in the case of its imports from far abroad.
According to Vale’s Mark Travers, it is now crucial for Tesla and other electric car makers to secure nickel deliveries for the next five to eight years. “This is also one of the important points of our negotiations. And I don’t think the requirements of other manufacturers in this regard are different,” Travers told Reuters.
Vale now operates nickel mining in Canada in three Canadian locations, in which it has recently invested more than $2 billion to make mining this strategic metal more environmentally friendly.
