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Tesla signed secret nickel supply deal with Vale

by Mike Robinson

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© Reuters. FILE PHOTO – The Tesla logo is seen at a Chambourcy dealership, France. It was taken on December 15, 2021, close to Paris. REUTERS/Gonzalo Fuentes

(Reuters) – Tesla (NASDAQ:) Inc secured an undisclosed agreement with Brazilian mining company Vale S.A. to supply nickel. Nickel is critical for making electric cars, Bloomberg News reported Wednesday, citing reliable sources.

Nickel, which is used in the manufacture of stainless steel, has been steadily rising since before conflict in Ukraine. This drove up prices even more and caused chaos at London Metal Exchange (March 1).

Other metals such as aluminum, palladium, and lithium used in automobiles have seen their prices rise too.

Bloomberg reported that Tesla, world’s biggest automaker, entered into a long-term supply contract for nickel with Vale from Canada.

Reuters asked Vale or Tesla to comment but did not receive any response.

Tesla’s supply chain problems resulting from the COVID-19 pandemic have been much less severe than those of other automakers, who are facing shortages of many components.

Elon Musk, CEO and Chief Executive Officer of SpaceX said this month that his company is facing serious inflationary pressures regarding raw materials and logistics.

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