Vale's executive vice president for base metals Deshnee Naidoo said the study validates the project's offering of an accelerated entry point into North America's burgeoning electric vehicle supply chain.

Nickel sulphate is the chemical compound used in the production of pre-cathode active materials for nickel-based lithium-ion batteries. Vale is the world's largest producer of nickel.

The final investment decision and schedule now hinges on factors including downstream battery supply chain integration and requirements and board and regulatory approvals, Vale said.

"We look forward to continued discussions with potential partners, as well as the Government of Quebec and the Government of Canada, to bring this strategic project to fruition," Naidoo said.

The proposed project is in Becancour, Quebec, and Vale touts it as the first-of-its-kind fully domestic nickel sulphate facility for the North American market.

Quebec is becoming a centre of battery activity. In March, General Motors and South Korean steelmaker POSCO announced they would build a battery factory in Becancour. The C$500 million (US$394 million) facility will process cathode active materials.

Rio Tinto entered into a strategic agreement with Nano One this week to develop and design a cathode production facility, also in Becancour.

Becancour is located between Montreal and Quebec City on the St Lawrence River.

Vale's mines in Canada produced around 76,000 tonnes of nickel last year.

Vale's share price was down 4% day on day at US$17.09 on June 10.