Vale, the world's top nickel and iron ore producer, has completed a prefeasibility study for its proposed nickel sulphate facility in B?(C)cancour Que., the company said on June 9. The facility is expected to process 25,000 tonnes of nickel into nickel sulphate annually to supply the lithium-ion battery market for electric vehicles.
The project's final investment decision and schedule, however, will depend on a range of factors, including downstream battery supply chain integration and requirements, as well as board and regulatory approvals, the company said. It did not release details about the expected capex of the facility.
The Brazilian miner has nickel mines in Sudbury, Manitoba and Labrador, as well as processing facilities. If the latest project is approved, it will utilize the current and future nickel produced from its Canadian operations. ?EUR?
"This is a key validation for a project that offers both diversified sales and an accelerated entry point into North America's burgeoning electric vehicle supply chain," said Deshnee Naidoo, executive vice-president of Vale Base Metals. The company's Canadian operation in Sudbury produces about 65,000 tonnes of nickel annually.
In May, the company inked a long-term deal with Tesla (NASDAQ: TSLA) that will see the Brazilian miner supplying its electric vehicles (EVs) with nickel mined in Canada.