Brazilian Vale SA announced that it has signed a long-term nickel supply agreement with American electric vehicle manufacturer Tesla Inc.
The financial terms of the agreement were not disclosed.
Vale is the world's largest producer of nickel and iron ore. The company said it plans to supply Tesla with nickel produced in Canada.
Nickel is a key element in the production of batteries used in most electric vehicles, writes MarketWatch. Vale said in a statement that the agreement is in line with the Brazilian company's plans to boost nickel sales in the electric vehicle market.
In March, the company signed a multi-year deal to supply nickel to Swedish battery manufacturer Northvolt AB.
