Brazilian miner Vale has completed a prefeasibility study for its nickel sulphate project in Becancour, Quebec.
The project will be low-carbon and produce high-grade nickel, with an annual capacity to process 25,000 tonnes of contained nickel into nickel sulphate.
Vale will base its final investment decision on several factors, including downstream battery supply chain integration and requirements.
The nickel sulphate can be used in production for pre-cathode active materials for nickel-based lithium-ion batteries, Vale said.
"This is a key validation for a project that offers both diversified sales and an accelerated entry point into North America's burgeoning electric vehicle supply chain," said Executive Vice President of Vale Base Metals Deshnee Naidoo.
Quebec is becoming a centre of battery activity. In March, General Motors and South Korean steelmaker POSCO announced they would build a battery factory in Becancour. The C$500 million facility will process cathode active materials.
Rio Tinto entered into a strategic agreement with Nano One this week to develop and design a cathode production facility, also in Becancour.
Becancour is located between Montreal and Quebec City on the St. Lawrence River.