Tesla signed secret nickel supply deal with Vale - Bloomberg News
Reuters
Published Mar 30, 2022 09:13AM ET
Updated Mar 30, 2022 11:01AM ET
(Reuters) - Tesla (NASDAQ:TSLA) Inc has signed an undisclosed deal with Brazilian mining company Vale S.A. for the supply of nickel to the electric car maker, Bloomberg News reported on Wednesday, citing sources.
The price of nickel, which is essential to making batteries for electric vehicles, had been rising steadily even before the conflict in Ukraine drove it up even further and triggered chaos at the London Metal Exchange in early March.
Prices of other metals used in cars, including aluminum, palladium and lithium, have also soared recently.
Tesla, the world's largest automaker, signed the multi-year supply deal with Vale for nickel from Canada, Bloomberg reported.
Tesla did not immediately respond to a Reuters request for comment.
Vale declined to comment on the report, but said it had stated previously that the company currently sells 5% of its production into the EV market and plans to increase that to 30%-40%.
Tesla has been less affected by supply chain issues arising out of the COVID-19 pandemic, when compared with other automakers that have cut production as they face shortage of several components including chips and battery metals of EVs.
Chief Executive Officer CEO Elon Musk said earlier this month that the electric car maker and his rocket company SpaceX are facing significant inflationary pressures in raw materials and logistics.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.