TORONTO – Brazilian miner Vale SA is in talks with Tesla and other actors in the electric vehicle supply chain (EV) to protect nickel from its Canadian operations, the head of the miner’s base metals unit said Friday.
Tesla did not respond to a request for comment.
In July, Tesla CEO Elon Musk suggested miners produce more nickel, a key element in the company’s batteries that force the company’s electric cars. Musk presented a “giant contract” if the materials can be produced ecologically.
While electric cars are expected to reduce global carbon emissions, environmentalists are concerned that the production of parts of electric vehicles and greater mining could harm the environment.
Analysts also warned of a nickel deficit, which makes batteries denser so cars can run more on a singles charge.
Tesla and other automakers will need to make sure there is enough nickel to produce the amount of batteries needed for electric cars over the next five to eight years, He told Reuters Mark Travers, Vale’s CEO.
“So that’s the nature of the discussions that I’m sure are taking place right now in the industry and, without commenting in particular on Tesla, those are the conversations we’re having right now,” he said.
When asked if Vale and Tesla had any conversations, Travers replied, “Yes, absolutely. “
Vale, with a Canadian oconsistent spanning 3 provinces, is expanding its Voisey’s Bay to an underground oconsistent with a production that will produce approximately 40,000 tons of nickel in the form of a concentrate consistent with the year.
The miner spent about $2 billion on low-carbon projects, adding underground vehicle electrification, fuel change and heat recovery, Travers said.
In Canada, it is also the possibility of a carbon garage in relays in its Thompson operations, Manitoba, he said.
These considerations are “a key focal point” in discussions with automakers and participants in electric vehicles, he said.
“Discussions about nickel are at the heart of concerns,” he said.
© Thomson Reuters 2020
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