Brazil’s mining sector posted lukewarm results at the beginning of 2022. Both production and sales were down significantly in Q1 compared with one year prior, due in part to maintenance on a number of operation units across the country, the effects of strong rains in the state of Minas Gerais, and a sharp decrease in Chinese imports.
Rising costs, ongoing Covid lockdowns in China, and economic uncertainty in Europe continue to cast a cloud over the mining sector’s prospects.
But there could be one bright spot on the horizon: growing global demand for the minerals used to make electric vehicle (EV) batteries, illustrated by a recently confirmed deal between EV-maker Tesla and Brazilian mining giant Vale. Following weeks of rumors about “secret deals” between the two companies, Vale confirmed on May 6 that it had reached a long-term agreement to supply Tesla with Class 1 nickel.
In a statement, the mining company said that it aims to deliver 30 to 40 percent of its Class 1 nickel sales to the “fast-growing” EV industry.
Demand for battery-related minerals explodes
Tesla’s partnership with Vale is the EV-maker’s latest move to source in-demand metals directly from mining companies, bypassing suppliers. With Tesla leading the way, the auto...
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