TORONTO and DETROIT, Nov. 17,
2022 /PRNewswire/ -- Vale Canada Limited, a
subsidiary of Vale S.A., and General Motors Co. (NYSE: GM),
announced today they have signed a term sheet for the long-term
supply of battery grade nickel sulfate from Vale's proposed plant
at Bécancour, Québec, Canada. 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.
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, which will power a
broad portfolio of 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. Deliveries are targeted to commence in the second half of
2026.
This initiative highlights Vale's uniquely strategic position to be
the supplier of choice to the EV industry, leveraging its
low-carbon footprint and market-leading position as North America's largest producer of finished
nickel. Nickel sulfate is the chemical compound used in the
production of pre-cathode active materials for nickel-based
lithium-ion batteries.
"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," said Vale Executive Vice
President of Base Metals, Deshnee Naidoo. "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. We look
forward to continuing engagements with the governments of
Canada and Quebec on this strategic critical mineral
project."
"GM's dedicated cross-functional organization — including experts
from global purchasing and supply chain, corporate development,
legal, finance and treasury — is strictly focused on building a
secure, sustainable, scalable and cost-competitive EV supply
chain," said Doug Parks, GM
executive vice president of Global Product Development, Purchasing
and Supply Chain. "Their work has already allowed GM to sign
multiple binding agreements to secure the battery raw material to
support 1 million units of annual EV capacity in North America in 2025. 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.,"
said Parks.
Vale and GM have also agreed to study collaborative ways to partner
on advanced technology development and commercialization pathways
to harvest recycled metals.
"This announcement between Vale and GM builds on Canada's world-leading EV battery industry,"
said the Honorable François-Philippe
Champagne, Canada's
Minister of Innovation, Science and Industry. "It's become even
more clear that Canada can be the
supplier of choice for the electric cars of the future. By
leveraging Canadian critical minerals, we will see more jobs for
Canadians, a growing economy and a greener and cleaner future for
everyone."
"The signing of this agreement confirms that the biggest players in
the industry want to invest here and enter our supply chain. We
have the resources and the expertise to produce the cleanest
battery in the world, and this news will certainly contribute to
that," said Pierre Fitzgibbon,
Québec's Minister of Economy, Innovation and Energy, Minister
Responsible for Regional Economic Development and Minister
Responsible for the Metropolis and the Montréal Region.
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 responsibly sourced cobalt. With headquarters in
Toronto, Canada, and operations in
Newfoundland & Labrador,
Ontario, Manitoba, Indonesia and Brazil, the business delivers critical
building blocks for a cleaner, greener future.
General Motors (NYSE:GM) is a global company focused on
advancing an all-electric future that is inclusive and accessible
to all. At the heart of this strategy is the Ultium battery
platform, which will power everything from mass-market to
high-performance vehicles. General Motors, its subsidiaries and its
joint venture entities sell vehicles under
the Chevrolet, Buick, GMC, Cadillac,
Baojun and Wuling brands. More information on the
company and its subsidiaries, including OnStar, a global
leader in vehicle safety and security services, can be found
at https://www.gm.com.
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content:https://www.prnewswire.com/news-releases/vale-and-gm-sign-long-term-nickel-supply-agreement-in-canada-critical-to-north-american-ev-supply-chain-301681978.html
SOURCE General Motors Co.