Brazilian-based Vale will be supplying Swedish batter producer Northvolt AB with nickel rounds from its Long Harbour refinery in Newfoundland.
The nickel miner announced on March 22 that it's signed a multi-year deal to supply this low-carbon product, framing it as the two companies' "shared commitment" toward sustainability in the electric vehicle supply chain.
These button-shaped nickel melt rounds contains high nickel content and low purity levels, typically used in smelting applications.
Vale said this product has a verified carbon footprint of 4.4 tonnes CO2 equivalent per tonne of nickel – about one-third the Nickel Institute average for Class 1 nickel.
In a news release, Vale said the agreement is the result of more than two years of negotiation and "will be the launchpad for further cooperation in various areas."
“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 in a statement. “We’re excited to build a lasting relationship with Northvolt that raises the bar on sustainably sourced raw materials for this fast-growing sector.”
Company-wide, Vale said it's investing between US$4 billion and US$6 billion to cut carbon emissions 33 per cent by 2030, as part of its effort to reach net zero emissions by 2050.
Northvolt has its own goals of reducing carbon emissions by up to 90 per cent compared to benchmark batteries today, primarily by leveraging clean energy in production and recycling.
“Northvolt was founded with the mission to build the world’s greenest battery to enable the transition to electrification," said Maria Åstrand, Northvolt’s Vice President Active Materials in the release.
"We want to build batteries with a minimal CO2 footprint using clean energy and smart technology. This partnership is perfect for us to be able to reach that ambition. We are further excited by the prospect of closing the loop with the electrification of the nickel mining industry through our mutual partners that provides electric mining equipment.”
