Vale (NYSE: VALE) has struck a multi-year agreement to supply Swedish lithium-ion battery manufacturer Northvolt AB with low-carbon nickel from its Long Harbour refinery in Newfoundland.
Details regarding volume and pricing were not released, but the multinational base metals miner said that the agreement had been two years in the making and would serve as a “launchpad for further cooperation.”
“This supply agreement is another strategic milestone as we pivot our business towards electric vehicle demand,” said Deshnee Naidoo, Vale’s executive vice-president of Base Metals. “We’re excited to build a lasting relationship with Northvolt that raises the bar on sustainably sourced raw materials for this fast-growing sector.”
The agreement comes as electric vehicle manufacturers look to not only secure nickel amidst supply constraints – but in alignment with EVs being part of the switch away from fossil fuels, to secure metal produced at a reduced carbon intensity.
The deal fits with Northvolt’s plans reduce carbon emissions associated with batteries by up to 90%, mainly through leveraging clean energy in production and recycling.
April 18, 2024
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