As Tesla Inc (NASDAQ:TSLA) and other automakers roll electric vehicles off the assembly line, demand for minerals used to make batteries naturally soars. That’s having a ripple effect in the mining industry, and one company is taking steps to deal with the spike.
Investor’s Business Daily has the news on a mineral that has been flying off the shelves.
As Tesla (TSLA), General Motors (GM), Ford Motor (F) and Fiat Chrysler (FCAU) accelerate electric vehicle production, Brazilian mining giant Vale (VALE) will invest roughly $1.54 billion to launch underground nickel mining operations in Canada to meet booming demand for minerals used in EV batteries.
Vale’s Voisey’s Bay nickel move came as that project was nearing the end of its open-pit life, Bloomberg said. The bet on underground mining will extend the life of the mine by 15 years and create 1,700 direct jobs. Construction is likely to start this summer, with operations kicking off in April 2021.
At the present time, electric vehicles account for roughly three percent of the auto market. According to industry forecasts, that number will surge to between 40 and 50 percent on a worldwide basis by 2040.
That should be good news for miners, and Vale is proactively getting ready.
Tesla Inc shares were trading at $343.19 per share on Wednesday morning, up $0.42 (+0.12%). Year-to-date, TSLA has gained 10.23%, versus a 5.04% rise in the benchmark S&P 500 index during the same period.