Global iron ore giant Vale plans to invest US$6.5 billion in 2024, including US$2.5 billion to US$3 billion in minerals needed for energy transition technologies, such as copper and nickel, according to bnamericas**.
The company will invest $6 billion in 2023.
With global demand for electric vehicles expected to rise, the energy transition is in the spotlight for investors.
Deshnee Naidoo, Vale's head of base metals, said at a recent investor conference in London that copper and nickel demand will grow by 16% and 19% respectively in 2030.
In 2030, the average annual growth rate of electric vehicle sales will reach 24%.
However, this comes with risks.
Vale has a lot of experience with iron ore and I think it should continue to be a priority. Historically, Vale has had little experience in copper-nickel development, and we need to keep in mind that there are many new technologies being developed," said Carlos Martins, CEO of Cedro Minerao and founder of metals consultancy Neelix.
These are driving demand for electric vehicles in the copper-nickel industry, which may shift to other materials under development, such as sodium batteries. But investing in copper-nickel is Vale's challenge to itself. For now, only time will tell," added Martins, a former director of Vale.
Vale's 2024 copper production target is 32-3550,000 tons, up from 32 this year50,000 tonnes has increased, and 37 is expected in 20265-41.00,000 tons.
This year's nickel production is 1650,000 tons, 16-17 in 202450,000 tons, 21-230,000 tons in 2026.
Iron ore production is expected to reach 3 this year1.5 billion tons, compared to 3200 million tons, compared to 34-3.600 million tons.
*: Ministry of Natural Resources.