According to Bloomberg, General Motors (GM) is in advanced negotiations with Vale, the world's largest producer of Iron Ore and Nickel, for a stake in its newly established base metals business. With the shift towards electric vehicles picking up pace, Vale is seeking to capitalize on this growth opportunity. The base metals division, which includes resources such as Nickel and Copper for electric vehicle batteries, presents a considerable growth opportunity with a predicted 50% increase in Nickel demand and a 29% growth in Copper demand per year by 2030.
Vale stated during its Vale Day 2022 event that its base metals business has great potential but requires changes in management and a new board. The mining giant is in discussions with potential partners who have extensive experience in the electric vehicle transition and aims to finalize a deal by H1 2023.
GM is among several major organizations, including Saudi Arabia's Public Investment Fund and Mitsui & Co., bidding for a piece of Vale's nickel and copper business. The automaker's recent equity investment of up to $650 million in Lithium Americas, to set up the largest known lithium source in the US, supports its plans for a vertically integrated EV supply chain as it aims to sell one million EVs by 2025.
This potential deal with Vale provides insight into GM's future business plans, and as the situation progresses, more updates will be available.