Vale is advancing plans to build a $325 million nickel sulfate facility in Quebec’s Bécancour industrial park—marking the first project of its kind in North America. Unlike other companies that have stalled or withdrawn from battery-related investments, Vale is moving forward with a strategic focus on supplying a key battery material rather than manufacturing batteries themselves. The plant is designed to produce nickel sulfate used in lithium-ion battery cathodes, addressing a projected global supply shortage by 2030. The Quebec government has already signaled its support with a $55 million loan offer, and the Bureau d’audiences publiques sur l’environnement (BAPE) will hold public consultations starting June 17.

This initiative is a major win for the local market, particularly in the Centre-du-Québec region. The project will process 25,000 tonnes of nickel annually—enough to support batteries for 375,000 electric vehicles—and create 65 high-quality jobs. The processed material will be delivered directly to Ultium CAM, a nearby cathode manufacturer and joint venture between General Motors and Posco, via a dedicated pipeline. This integrated supply chain strengthens Bécancour’s position as a core hub in Quebec’s growing battery ecosystem and reduces dependence on international sources, especially in an industry facing geopolitical uncertainty.

Vale’s commitment brings much-needed stability and optimism amid setbacks in other Canadian electrification efforts, such as Honda pausing EV plans in Ontario and Ford withdrawing from a Bécancour cathode plant. By leveraging its existing operations in Newfoundland and Ontario, Vale reinforces the regional value chain and injects long-term investment into Quebec’s clean technology sector. Even in the face of global supply chain risks, Vale’s local-first approach is poised to yield sustainable benefits for the provincial economy and its energy transition goals.

Source: La Presse

Author: Julien Arsenault

Published: June 9, 2025

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