GM secures essential raw materials for EV production

With this cooperation, GM secures the supply of nickel sulfate from a US free trade partner to meet its rapidly growing demand for electric vehicles in North America. Vale is the market-leading producer of finished nickel in North America and thus an important supplier to the EV industry. Nickel sulfate is the chemical compound used in the production of active materials for the pre-cathode of nickel-based lithium-ion batteries. The new facility for producing the raw material is to be built in Bécancour, Québec.

Nickel for 350,000 EVs

Under the agreement, Vale will supply battery-grade nickel sulfate, equivalent to 25,000 tons of nickel per year, which will be used in GM's Ultium battery cathodes that will power a wide range of electric vehicles, including the Chevrolet Silverado EV, Blazer EV, and Equinox EV, the Cadillac LYRIQ, the GMC Sierra EV, and the GMC HUMMER EV Pickup and SUV. The quantity of nickel included is enough to supply approximately 350,000 EVs annually. Deliveries are expected to start in the second half of 2026.

"This is a significant agreement for Vale Base Metals, bringing a key partner in GM to this unique facility for Canada and North America," said Deshnee Naidoo, Executive Vice President of Vale Base Metals. "The proposed nickel sulfate project would use high-purity, low-carbon nickel from our Canadian refineries and is a natural extension of the business, as it provides diversified sales and a quick entry and anchor point into the North American electric vehicle market. We look forward to further collaboration with the governments of Canada and Quebec on this strategically important minerals project."

"GM's dedicated cross-functional organization - including experts from global purchasing and supply chain, corporate development, legal, finance, and the finance department - is strictly focused on building a secure, sustainable, scalable, and competitive EV supply chain," said Doug Parks, GM Executive Vice President of Global Product Development, Purchasing and Supply Chain. "Their work has already enabled GM to sign several binding agreements to secure the battery raw materials needed for an annual EV capacity of 1 million units in North America by 2025. This new agreement with Vale underscores GM's leading role in building a secure and sustainable EV supply chain in North America and will provide GM with high-quality nickel sulfate from a low-carbon source."

Vale and GM have also agreed to jointly explore how they can work together on the development of advanced technologies and the commercialization of recycled metals. Canadian politics also played a role in the agreement, with Canada's Minister of Innovation, Science and Industry, François-Philippe Champagne, and Québec's Minister of Economy, Innovation and Energy, Pierre Fitzgibbon, present at the signing.