General Motors Co. has discussed taking a minority stake in Vale SA’s VALE, +0.54% base metals unit—which mines and processes nickel used to build electric vehicle batteries—according to people familiar with the matter.
Vale said it would consider selling up to a 10% stake in the business in December. A sale of that size could be valued at as much as $2 billion, according to some people familiar with the matter; Vale did not disclose its potential target sale price.
Automakers have been signing supply agreements and forming closer partnerships with mining companies as they compete for limited supplies of metals needed to build the required batteries in electric vehiclesBloomberg reported.
GM’s interest in the Vale business earlier on Wednesday. The sale process is in its early stages. According to sources familiar with the matter, it has attracted some of the world’s most considerable sovereign wealth and pension funds, including from the Middle East & North America.
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