#GeneralMotors Competes for Stake in #Nickel Assets in Race to Secure EV Metals

Source: Getty Images
Source: Getty Images

Tesla has long dominated the electric vehicles (EV) sector thanks in a large part to the company’s vertical integration and ability to maintain control over the supply of the materials that it needs. However, Tesla’s top spot in the market could be compromised as other automakers look to strike deals with key metals suppliers.

Brazilian mining giant Vale SA is looking to separate the metals unit in 2023, which is one of the largest nickel and copper operations, and has already attracted interest from several car companies, including Tesla’s rival General Motors.

According to Bloomberg, General Motors is one of the companies that has moved to the next phase of obtaining a minority share in Vale’s metals unit, which may raise $2 billion through a partnership with another company for the venture.

This isn’t the first time the two companies have done business. Last year, Vale and GM signed a long-term supply agreement for battery-grade nickel which will see Vale supply 25,000 metric tons annually of contained nickel – enough to supply approximately 350,000 EVs every year – from its proposed plant in Québec, Canada.1

Vale’s metals unit, which is valued at $20-$25 billion, has also garnered interest from Japan’s Mitsui & Co.2

Meanwhile several other automakers like Ford and Volkswagen, have signed long-term mineral supply deals to secure materials for their EV batteries. Last year, Volkswagen formed a joint venture worth €3 billion (US$ with Belgium’s Umicore for cathode materials. Meanwhile, Tesla struck nickel and cobalt deals with BHP Group and Glencore, respectively, in 2021. In March of that year, Tesla also entered a mining venture in New Caledonia.3

Read more at: https://news.yahoo.com/general-motors-competes-stake-nickel-150000711.html

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