What Might Tesla's Nickel-Mining Deals Suggest About Future Strategy?

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Posted on EVANNEX on May 21, 2022, by Zachary Visconti

As electric vehicles continue to increase in popularity amongst buyers, minerals such as nickel, lithium and cobalt will become more important. Tesla and other automakers’ reliance on these minerals is crucial. With a new long-term nickel contract and a recently shared list of mineral suppliers, the company is showing its hand for the first time.

According to Reuters, Brazilian nickel miner Vale SA announced a long-term deal with Tesla earlier this month, set to come from the company’s Canadian mining operations. Tesla also shared a list of all of its direct suppliers for both nickel and cobalt, as reported by electrek, which both confirms the Vale announcement and offers some insight as to the automaker’s supply strategy for minerals essential to EV batteries.

Vale will supply Tesla with an ongoing source of low-carbon Class 1 nickel from Canada’s Newfoundland and Labrador, in addition to six other companies producing nickel for the automaker in New Caledonia, Australia and China.

“Congratulations to Vale on signing this significant deal with Tesla to supply the nickel the company needs to make batteries for electric vehicles,” Furey said. “Nickel from right here in Newfoundland and Labrador. Our province is certainly rich in resources the world needs today.”

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