On March 4, 2021, the New Caledonian government agreed to allow Brazilian mining giant Vale to sell its Goro nickel mine in the region, with the local government and organizations holding an absolute controlling stake, in order to quell the independence movement in the area.
As a French overseas territory in the South Pacific, New Caledonia is located 1,500 km east of Brisbane, Australia, and has the world’s fourth largest nickel production. The independence movement that began in December of last year was too violent and led to the mine’s shutdown.
Trafigura, the Swiss commodity trading company, originally planned to participate in the acquisition and ultimately gained a 19% stake instead of the previously negotiated 25%. In the end, 51% of the shares were held by local government and economic entities, forming absolute control. And on Thursday, independent protest leaders reached an agreement with the government, bringing an end to the independent protests.
Tesla did not invest in this deal, but according to the political agreement, it will serve as a “technology and industrial partner” of the Goro mine, providing support in product and sustainable development, and has acquired the right to acquire nickel raw materials.
Nickel, which was previously in high demand in the steel industry, has seen explosive demand in recent years as a component of ternary lithium batteries and new materials. Tesla, with its strong public relations capabilities, is also expanding its influence in raw materials in order to increase production capacity.
Source: Reuters
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