Vale S A : confirms supply deal with Tesla for low-carbon nickel

Press Release

Vale confirms supply deal with Tesla for low-carbon nickel

Rio de Janeiro, May 6, 2022 - Vale notes the disclosure by Tesla Inc today and confirms it signed a long-term contract with Tesla Inc to supply Class 1 nickel in the United States from its operations in Canada. This agreement is in line with our strategy to increase exposure to the electric vehicle industry, leveraging our low-carbon footprint and market-leading position as North America's largest producer of finished nickel.

"We are pleased to have the leading electric vehicle manufacturer Tesla among our customers" said Deshnee Naidoo, Vale's Executive Vice President of Base Metals. "This agreement reflects a shared commitment to sustainability and shows very clearly we are the supplier-of-choice for low-carbon and high purity nickel products essential for long-range batteries."

Vale's target is to deliver 30% to 40% of Class 1 nickel sales into the fast-growing electric vehicle industry.

Vale's Canadian operations produce some of the lowest-carbon nickel globally. Rounds from its Long Harbour refinery in Newfoundland & Labrador in 2020 had a verified carbon footprint of 4.4 tonnes CO2 equivalent per tonne of nickel, while pellets and powder from the Copper Cliff Nickel Refinery in Ontario had a verified footprint of 7.3 tonnes equivalent. This includes Scope 1 and 2 emissions from mining, milling and refining as well as upstream Scope 3 emissions from inputs.

Gustavo Duarte Pimenta

Executive Officer of Investor Relations

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This press release may include statements that present Vale's expectations about future events or results. All statements, when based upon expectations about the future, involve various risks and uncertainties. Vale cannot guarantee that such statements will prove correct. These risks and uncertainties include factors related to the following: (a) the countries where we operate, especially Brazil and Canada; (b) the global economy; (c) the capital markets; (d) the mining and metals prices and their dependence on global industrial production, which is cyclical by nature; and (e) global competition in the markets in which Vale operates. To obtain further information on factors that may lead to results different from those forecast by Vale, please consult the reports Vale files with the U.S. Securities and Exchange Commission (SEC), the Brazilian Comissão de Valores Mobiliários (CVM) and in particular the factors discussed under "Forward-Looking Statements" and "Risk Factors" in Vale's annual report on Form 20-F.