Vale (NYSE:VALE) said Thursday it has ended plans to build a C$325 million (US$231 million) nickel sulfate facility in Quebec after sole client General Motors (GM) pulled back its push to build electric vehicles due to weaker than expected demand and U.S. policy changes that make EVs less attractive.
GM (GM) will not immediately need nickel sulfate in Quebec because it has changed the timing of its Ultium Cam electric vehicle battery venture in Bécancour with South Korean steelmaker Posco (PKX), a Vale (NYSE:VALE) spokesperson told Mining.com, and “as a result, Vale Base Metals is cancelling its nickel sulphate plant project.”
Vale’s (VALE) project would have been the first-of-its-kind fully domestic nickel sulfate facility for the North American market.
Vale (VALE), which has nickel mines in Ontario, Manitoba and Newfoundland and Labrador, as well as processing facilities, said it will continue to work with GM (GM) on their partnership to supply Canadian nickel into the automaker’s North American supply chain.