Tesla Inc has signed an undisclosed deal with Brazilian miner Vale SA to supply nickel to the electric car maker, Bloomberg reported, citing sources.
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Moreover, the price of nickel, which is crucial for making electric car batteries, had been rising steadily even before the conflict in Ukraine pushed prices higher and sparked chaos on the London Metal Exchange in early March.
Furthermore, prices of other metals used in cars, including aluminum, palladium, and lithium, have also surged recently. Tesla, the world’s largest automaker, has signed a multi-year nickel supply deal with Vale, according to Bloomberg.
Tesla did not immediately respond to Reuters’ request for comment. Vale declined to comment on the report but said it had previously said it currently sells 5% of its production to the electric vehicle market and plans to increase that to 30%-40%.
