The agreement bolstered Vale's role as a supplier of choice to the growing electric vehicle industry and was aligned with Northvolt's imperative to minimize carbon emissions and other environmental impacts in the battery value chain, Vale said.
"This supply agreement is another strategic milestone as we pivot our business towards electric vehicle demand," said Deshnee Naidoo, Vale's executive vice president of base metals. "We're excited to build a lasting relationship with Northvolt that raises the bar on sustainably sourced raw materials for this fast-growing sector."
Vale did not give financial or other details of the agreement.
The firm produces nickel rounds from its Long Harbour refinery in Newfoundland and Labrador, Canada.
These had a carbon footprint og 4.4 tonnes CO2 equivalent per tonnes of nickel, roughly a third of typical Class 1 nickel, Vale said.
Northvolt is a European supplier of battery cells and systems.
Northvolt has to date secured over US$50 billion worth of contracts from key vehicle companies, including BMW, Fluence, Scania, Volkswagen, Volvo Cars and Polestar, to support its plans, which include establishing recycling capabilities to enable 50% percent of all its raw material requirements to be sourced from recycled batteries by 2030, the firm said.
