Tesla Inc has signed its first U.S. nickel supply deal, choosing Talon Metals Corp's Tamarack mine project in Minnesota due to plans to make the electric vehicle battery metal in a way it considers more environmentally friendly.
Indonesia is the world's largest nickel producer, but miners there typically use energy-intensive technology to extract the metal and deploy controversial waste disposal practices, including dumping waste rock in waterways.it hopes will allow it to suck carbon dioxide out of the atmosphere and chemically bind it - and thus permanently store it - to rocks found inside its Tamarack project in northern Minnesota.
"Responsible sourcing of battery materials has long been a focus for Tesla," Drew Baglino, a Tesla executive, said in a press release. Tesla plans to buy 75,000 tonnes of nickel concentrate over six years, as well as smaller amounts of cobalt and iron ore, at London Metals Exchange-listed prices. It was not immediately clear where Tesla will refine the nickel concentrate. The United States does not have a nickel refinery."Talon is excited to support Tesla's mission to accelerate the transition to renewable energy," Henri van Rooyen, Talon's CEO, said in a statement.
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