By 
General Motors Co.
GM,
+0.41%
has discussed taking a small stake in Brazilian miner Vale SA’s
VALE,
base metals unit, a business that mines and processes nickel and other metals crucial to building electric vehicle batteries, according to people familiar with the matter.
Vale said in December it would consider selling up to a 10% stake in the business, without disclosing a potential sale price. A stake of that size could be valued at as much as $2 billion, according to some of the people.
GM’s interest comes as auto makers increasingly seek out supply agreements and closer partnerships with mining and metals companies as they jostle for the world’s limited supply of metals they need to build the batteries needed in the EVs they hope to sell in coming years.
The sale process is in the early stages and has attracted some of the world’s biggest sovereign-wealth and pension funds, including from the Middle East and North America, according to people familiar with the matter. Bloomberg reported GM’s interest in the Vale business earlier Wednesday.
An expanded version of this report appears on WSJ.com.
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