Diversified resources group Vale has announced a multi-year supply agreement with European battery developer Northvolt for low-carbon nickel products from its Canadian operations.
Executive VP of base metals Deshnee Naidoo says the supply agreement is a strategic milestone for Vale, as it pivots its business towards electric vehicle demand.
Northvolt states that the agreement for nickel from Vale’s Canadian operations is a perfect fit for its ambition to build batteries with a minimal carbon dioxide (CO2) footprint.
Rounds from the Long Harbour refinery in Newfoundland have a verified carbon footprint of 4.4 t of CO2-equivalent for each ton of nickel – about one-third the Nickel Institute’s average for Class 1 nickel.
Vale has pledged to invest between $4-billion and $6-billion to cut absolute carbon emissions by 33% by 2030, as part of efforts to be net zero by 2050.