The giant mining company "Vale" in Northern Ontario confirmed that it has signed a long-term contract to supply "Tesla" with Class 1 nickel for its electric vehicles.

Vale said in a press release on Friday: This agreement aligns with our strategy to increase exposure to the electric vehicle industry, leveraging our low-carbon footprint and our leading market position as the largest producer of finished nickel in North America.

Deishni Naidoo, Executive Vice President of Base Metals at "Vale," said the company is pleased to partner with the leading electric car manufacturer. Naidoo said: "This agreement reflects a shared commitment to sustainability and clearly demonstrates that we are the preferred supplier of low-carbon, high-purity nickel products essential for long-range batteries."

The company added: "Vale's goal is to provide 30% to 40% of Class 1 nickel sales in the rapidly growing electric vehicle industry." This comes just over a month after news that Canada is investing two billion dollars in its mineral strategy for the electric vehicle battery supply chain.

In March, the province of Ontario issued its own mineral strategy aimed at positioning itself as a global supply leader.