A forward contract has been signed between General Motors Co. and Vale Canada Limited for the long-term supply of battery-grade nickel sulphate from Vale’s planned plant in Bécancour, Quebec, Canada. With the cooperation of this agreement, GM will have access to nickel sulphate from a US free trade partner to meet its rapidly growing electric vehicle production needs in North America.
Under the terms of the contract, Vale will supply battery-grade nickel sulfate, which adds up to 25,000 metric tons of contained nickel per year, for use in GM’s Ultium battery cathodes. These cathodes will power a variety of electric vehicles, including the Chevrolet Silverado EV, Blazer EV, Equinox EV, Cadillac LYRIQ, GMC Sierra EV, and GMC HUMMER EV Pickup Approximately 350,000 electric vehicles (EVs) can be produced each year using available nickel. Delivery of nickel is expected to begin in the second half of 2026.
With its low carbon footprint and market-leading position as the largest producer of finished nickel in North America, Vale is well positioned to serve as a leading supplier to the electric vehicle industry, as this project demonstrates. . Pre-cathode active materials for nickel-based lithium-ion batteries are created using the chemical compound nickel sulfate.
“This is a momentous agreement for Vale Base Metals that brings a key GM partner to this one-of-a-kind facility to Canada and North Americasaid Vale Executive Vice President, Base Metals, Deshnee Naidoo. “The proposed nickel sulphate project would use high-purity, low-carbon nickel from our Canadian refineries and is a natural extension for the business, providing diversified sales and a quick entry and anchor point into the North American electric vehicle market. We look forward to continuing our dialogue with the governments of Canada and Quebec on this strategic critical mineral project.
“GM’s dedicated cross-functional organization – comprising experts in supply chain and global purchasing, business development, legal, finance and treasury – is strictly focused on building a secure, sustainable, scalable and competitive EV supply chain,” said Doug Parks, GM’s senior vice president of global product development, purchasing and supply chain. “Their work has already enabled GM to sign several binding agreements to secure battery feedstock 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 American supply chain for electric vehicles and will provide GM with a significant supply of high-quality nickel sulfate from a low-carbon source.
“In addition, Canada continues to play an important role in GM’s all-electric future and hardware sourced from Vale will help support EV eligibility for consumer incentives under new U.S. clean energy tax credits said Parks.
Additionally, Vale and GM have decided to explore joint venture opportunities to collaborate on the development of advanced technologies and marketing strategies for the recovery of recycled metals.
“This announcement between Vale and GM is based on from Canada the global electric vehicle battery industry,” said the Honorable François-Philip Champagne, from Canada Minister of Innovation, Science and Industry. “It became even clearer that Canada may be the supplier of choice for the electric cars of the future. By leveraging vital Canadian minerals, we will see more jobs for Canadians, a growing economy, and a greener, cleaner future for all.
“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 expertise to produce the cleanest battery in the world, and this news will certainly help that,” said Peter FitzgibbonMinister of Economy, Innovation and Energy of Quebec, Minister responsible for Regional Economic Development and Minister responsible for the Metropolis and the Region of Montreal.
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