Tesla Inc has secured an undisclosed deal with Brazilian mining company Vale S.A. for the supply of nickel, which is essential to making batteries for electric vehicles, Bloomberg News reported on Wednesday, citing sources.
The price of nickel, which is used to make stainless steel and is a key material for electric vehicle batteries, had been rising steadily even before the conflict in Ukraine drove prices up even further and triggered chaos at the London Metal Exchange in early March.
Prices of other metals, including aluminum, palladium and lithium, used in cars have also soared.
Tesla, the world's largest automaker, signed a multi-year supply deal for nickel from Canada with Vale, Bloomberg reported.
Vale and Tesla did not immediately respond to Reuters' requests for comment.
Tesla has been less affected by supply chain issues arising out of the COVID-19 pandemic, when compared with other automakers that have cut production as they face shortage of several components including chips and battery metals of EVs.Chief Executive Officer CEO Elon Musk said earlier this month that the electric car maker and his rocket company SpaceX are facing significant inflationary pressures in raw materials and logistics.