Vale has signed a long-term contract with Tesla to supply nickel to the car manufacturer from its operations in Canada.

The mining company says the agreement is in line with its strategy to "increase exposure to the electric vehicle industry".

It adds that the deal highlights that Vale is a “supplier-of-choice for low-carbon and high purity nickel products essential for long-range batteries”.

Vale explains in a press release that its target is to deliver 30 to 40 per cent of Class One Nickel sales into the electric vehicle industry.

The company didn’t specify how long the agreement will last or how this will impact operations at its Canadian mines, including Thompson.