(Kitco News) - Vale Canada, a subsidiary of Brazilian mining group Vale S.A., announced today it has signed a term sheet with General Motors for the long-term supply of battery grade nickel sulfate from Vale’s proposed plant at Bécancour, Québec, Canada.
Nickel sulfate is the chemical compound used in the production of pre-cathode active materials for nickel-based lithium-ion batteries.
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.
According to a press release, 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 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. 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,” the company said in a statement.
Vale and GM have also agreed to study collaborative ways to partner on advanced technology development and commercialization pathways to harvest recycled metals.
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. The company’s base metals operations located in Newfoundland & Labrador, Ontario, Manitoba, Indonesia and Brazil.
