Automaker General Motors is considering acquiring a stake in Brazilian mining giant Vale’s base metals unit, reported Bloomberg News citing people familiar with the matter.
The move comes as the automaker intends to access the materials needed to manufacture electric vehicle (EV) batteries.
GM has advanced to the next bidding round for a minority stake in Vale’s business, sources said.
A potential stake sale could fetch $2bn for Vale, reported the news agency.
Last November, Bloomberg News reported that Saudi Arabia’s Public Investment Fund and Japanese trading house Mitsui were also considering offers for a stake in Vale’s nickel and copper operations.
Although talks are in progress, Vale has not made a final decision about the stake sale.
Last December, Reuters reported that Vale was in advanced talks with undisclosed potential partners for its new base metals investment vehicle.
Vale intends to place its copper and nickel mines into a new legal structure, Vale Base Metals.
The Brazilian firm is looking to announce a strategic partner for the new entity in the first half of this year.
Last year, General Motors signed an agreement with Vale whereby the automaker will buy battery-grade nickel sulfate equal to 25,000mtpa of contained nickel for use in its Ultium battery cathodes to power EVs.
Vale Canada would start nickel sulfate deliveries from its proposed plant in Becancour, Quebec, Canada, in 2026.
Vale currently serves as a direct nickel supplier for Tesla batteries.