Business Maverick: General Motors Competes for Stake in Vale’s Base Metals Unit

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General Motors Co. is competing for a stake in Brazilian mining giant Vale SA’s base metals unit, people familiar with the matter said, underscoring automakers’ desire for easy access to the materials needed for electric vehicle batteries.

Detroit-based General Motors has advanced to the next round of bidding for a minority stake in the business, the people said, asking not to be identified discussing confidential information. Vale could raise more than $2 billion from a deal, according to the people.in November that Saudi Arabia’s Public Investment Fund and Japanese trading house Mitsui & Co. were also weighing making offers for a slice of the nickel and copper operations.

Automakers have been stepping up efforts to lock in supplies of nickel and copper, including through direct deals with producers of these metals. Vale is already a direct supplier of nickel for Tesla Inc. batteries. General Motors reached its ownIn January, General Motors and Lithium Americas Corp. agreed a $650 million pact to develop the largest US lithium deposit, at the Thacker Pass mine in Nevada.

 

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