Vale Boosts Investment to US$6.5 Billion by 2024 Amidst Rising Demand for Transition Metals
Significant Increase in Investment for Minerals
Vale, the global iron ore giant, plans a substantial investment of $6.5 billion in 2024, a notable increase from its 2023 investment of $6 billion. BNAmericas reports that of the total 2024 investment, $2.5-3 billion will be specifically allocated to minerals crucial for energy transition technologies, such as copper and nickel.
Focus on Energy Transition and EV Demand
The rising global demand for electric vehicles has turned the spotlight on energy transition, attracting considerable investor interest. Deshnee Naidoo, Vale's head of base metals, shared at an investor conference in London that the demand for copper and nickel is projected to grow by 16% and 19%, respectively, by 2030. Meanwhile, electric vehicle sales are anticipated to increase at an average annual rate of 24% through 2030.
Potential Risks and Challenges
Despite the optimistic outlook, Vale faces challenges, especially considering its historical focus on iron ore rather than copper-nickel development. Carlos Martins, CEO of Cedro Mineração and founder of metals consultancy Neelix, emphasized Vale's lack of experience in copper-nickel development and the need to adapt to emerging technologies, like sodium batteries.
Production Targets for the Coming Years
Vale has set ambitious production targets for the next few years:
- Copper production is aimed at 325,000-355,000 tons in 2024, with an increase to 375,000-410,000 tons by 2026.
- Nickel production is forecasted at 165,000 tons for 2023, with plans for 160-175,000 tons in 2024 and 210-230,000 tons by 2026.
- Iron ore production is expected to hit 315 million tons this year, 320 million tons in 2024, and 340-360 million tons by 2026.
