Vale to supply Northvolt with low-carbon nickel products for batteries

On March 22nd, Vale informed that Vale Canada and lithium-ion battery manufacturer Northvolt announced on the same day that they had reached a multi-year agreement on Vale's supply of low-carbon nickel products to Northvolt, a move that would strengthen the two companies' shared commitment to the sustainable development of the electric vehicle supply chain and the electrification of the mining industry.

The agreement reconfirms Vale's position as the preferred supplier to the fast-growing electric vehicle industry and meets Northvolt's commitment to minimizing carbon emissions and other environmental impacts in the battery manufacturing value chain.

Vale is the world's leading producer of low-carbon and high-purity nickel products. The carbon footprint of the nickel round cake produced by the long Port Refinery in Newfoundland, Canada, has been certified to emit 4.4t carbon dioxide equivalent per ton of nickel, which is about 1/3 of the average carbon footprint of first-class nickel of the International Nickel Association. Vale has pledged to invest between $4 billion and $6 billion to reduce absolute carbon emissions by 33 per cent by 2030, thereby achieving net zero emissions by 2050. Vale is also committed to reducing net carbon emissions in the value chain by 15 per cent by 2035. Northvolt aims to raise standards for sustainable development in the battery manufacturing industry and plans to reduce battery carbon emissions by up to 90 per cent from current benchmarks through the use of clean energy and resource recycling in production.

"this supply agreement is another strategic milestone as we shift our business focus to meeting the needs of the electric vehicle industry." Ms. Deshni Nedu (Deshnee Naidoo), Executive Vice President of Vale's basic metals business, said, "We are excited to establish a lasting relationship with Northvolt, which has raised the standard of sustainable procurement of raw materials for this fast-growing industry."

Northvolt's mission is to make the greenest batteries in the world to make them electrified, "said Maria æ strand, vice president of active materials at Northvolt. We want to use clean energy and smart technology to make batteries with the smallest carbon footprint. This cooperation will help us to achieve this grand goal. What makes us even more excited is that we are expected to achieve closed-loop cooperation in the future through the electrification of the nickel mining industry through a common partner of electric mining equipment manufacturers. "

The agreement is the result of more than two years of negotiations and has laid the foundation for further cooperation in many different fields in the future.

About Vale

Vale is one of the world's largest producers of low-carbon, high-quality nickel products and an important producer of copper and cobalt for responsible procurement. Vale's base metals business is headquartered in Toronto, Canada and operates in Newfoundland and Labrador, Ontario and Manitoba in Canada, as well as Indonesia and Brazil. Committed to providing key raw materials for a cleaner and greener future.

About Northvolt

Northvolt is an European manufacturer of sustainable, high-quality battery units and systems. Northvolt was founded in 2016 to transform Europe into a decarbonized future. Its mission is to make lithium-ion batteries with the smallest and greenest carbon footprint in the world. Northvolt is growing rapidly and currently has more than 2500 employees from more than 100 countries. Northvolt's customers, including BMW, Fluence, Scania, Volkswagen, Volvo and Polar Star, have supply contracts worth more than $50 billion, which will support the company's plans, including building recycling capacity, which aims to achieve 50 per cent of raw materials from recycled batteries by 2030.

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