As per sources, Tesla Inc has signed a nickel supply deal with Brazilian mining company Vale S.A.

Following the Russian invasion of Ukraine, the price of nickel, essential to the making batteries for electric vehicles, has risen steadily.

Recently, prices of other metals used in electric cars, including aluminum, palladium and lithium, have also risen significantly.

Tesla, the world’s largest automaker, signed the multi-year supply deal with Vale for nickel from Canada, reads a report from Bloomberg citing sources.

Tesla did not immediately respond to requests for comments.

Vale declined to comment on the report.

Previously, it had said, it will increase the sale of aluminium from its currently 5% to 30%-40%.

Compared to its peers, Tesla has been less affected by supply chain issues arising out of the COVID-19 pandemic.

Earlier this month, Tesla’s CEO Elon Musk said, Tesla and SpaceX are facing significant inflationary pressures in raw materials and logistics.

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Tags: aluminum, batteries, Brazil, Brazilian, COVID-19 pandemic, electric cars, electric vehicles, Elon Musk, inflationary pressures, invasion, lithium, logistics, mining company, nickel, nickel price, palladium, raw materials, Russia, Russian, SpaceX, supply deal, Tesla Inc, Ukraine, Vale S.A