General Motors and its partner have paused the Phase II construction at a cathode plant in Quebec, Canada, leading Vale SA to cancel a nickel sulfate project. In 2022, General Motors entered into an agreement with Vale for nickel procurement as part of its strategy to establish an electric vehicle battery supply chain. However, electric vehicle demand has not met expectations, and adjustments in U.S. policies have diminished the market appeal for electric vehicles, prompting companies to reassess various investment projects. General Motors stated this week that it expects to incur $1.6 billion in expenses due to the reduction of its electric vehicle operations.