Brazil’s Vale signs long-term deal to supply Tesla with nickel

FILE PHOTO: Brazilian mining company Vale SA logo and trading
FILE PHOTO: Brazilian mining company Vale SA logo and trading symbol are displayed on a screen at the NYSE in New York

SAO PAULO (Reuters) – Brazilian miner Vale SA said on Friday it has signed a long-term deal with Tesla Inc to supply the U.S.-based electric vehicle maker with nickel coming from its Canada operations.

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Vale did not provide financial details on the deal and did not say for how long it will last.

The Brazilian miner said in a securities filing that the agreement involves supplying Tesla with low-carbon class 1 nickel and is in line with its strategy of increasing its exposure to the electric vehicle industry.

Vale said it aims for between 30% and 40% of its class 1 nickel sales to go to the fast-growing sector.

(Reporting by Gabriel Araujo; Editing by Susan Fenton and Chizu Nomiyama)

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