Vale’s Brazilian ferronickel complex adds capacity of 15ktpy, lifting its nameplate output to 40ktpy Ni-in-FeNi.

Vale Base Metals has commenced operation of the second furnace at its Onça Puma ferronickel complex in Pará, Brazil, adding 15ktpy of Ni capacity. The expansion lifts Onça Puma’s nameplate capacity to 40ktpy. This supports Vale’s 2025 global production guidance of 160–175kt Ni, with a long-term target of 210–250kt Ni by 2030.

In parallel, Vale is ramping up output at its C$4.13Bn (US$2.94Bn) Voisey’s Bay expansion project in northern Labrador, Canada, following the completion of construction and commissioning in late 2024. Production from the Reid Brook and Eastern Deeps mines surged in 2025, boosting Vale’s refined nickel output by 44% y-o-y in Q2 2025.

It should also be noted that even though Vale’s mine production is expected to rise more than 20% y-o-y in 2025, this growth largely represents a recovery from several years of declines. Vale’s combined Canadian and Brazilian output fell steadily from 214.1kt Ni in 2017 to 109.7kt Ni in 2023, before rebounding in 2024 and 2025.

However, this growth still stands in sharp contrast to the broader Western market, where nickel capacity has been shrinking since 2024. First Quantum Minerals’ Ravensthorpe high-pressure acid leach (HPAL) operation in Western Australia was placed under care and maintenance, whilst Anglo American divested its Brazil nickel business to MMG.

This downturn has deepened in 2025. From January to September, LME nickel prices averaged US$15,252/t, down by 10.8% y-o-y, pressured by oversupply from China and Indonesia and weaker-than-expected NCM battery demand. Against this backdrop, BHP placed its entire Nickel West operation under care and maintenance and is reviewing a possible divestment. The company also withdrew its 17% stake in Tanzania’s Kabanga project for up to US$83M.

Looking ahead, Vale’s production growth underscores its position as the only Western major still expanding nickel capacity whilst peers retreat. Yet, with prices remaining weak and margins under pressure, a key question is how long Vale can sustain its higher-output strategy in a lower or even negative margin environment.