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Highlights
- An expected surge in the demand urges automakers to secure access to battery metals and other electric car parts.
- Tesla has committed to purchasing 75,000 tonnes of nickel concentrates manufactured from Talon’s Tamarack project.
- Elon Musk has constantly expressed concern about future nickel supplies because of challenges in sustainable sourcing.
Tesla Inc (NASDAQ:TSLA) has decided to buy nickel supplies from miner Talon Metals. An expected surge in the demand urges automakers to secure access to battery metals and other electric car parts.
According to Talon’s statement on Monday, Tesla has committed to purchasing 75,000 tonnes of nickel concentrates manufactured from Talon’s Tamarack project, linked to the London Metal Exchange’s cash-settlement price for a nickel.
Located in Minnesota, Tamarack, a nickel, copper, and cobalt joint venture between Talon and Rio Tinto, is not yet in commercial production.
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Elon Musk has constantly expressed concern about future nickel supplies because of challenges in sustainable sourcing, with demand set to increase rapidly as the world gradually moves to electric vehicles. The agreement with Talon comes in less than six months after Tesla struck a nickel-supply deal with BHP.
There has been a burst in activity among car makers acquiring nickel supplies and other materials needed to produce batteries that will power the green-energy transition after this announcement.
Image Source: © Photomall | Megapixl.com
While BHP, the world’s biggest miner, said on Monday that it would be buying a marginal stake in a Tanzanian nickel project as it expands its business. In contrast, last month General Motors said it would build a plant to manufacture magnets using rare-earth materials provided by MP Materials Corp.
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The US administration has promised to invest in US domestic manufacturing and move away from dependence on adversaries for crucial inputs. In October, Tesla had raised concerns about rising nickel prices, which were impacting battery cells.
According to the statement of Rio Tinto Minerals (ASX:RIO) CEO Sinead Kaufman, “Rio Tinto is working to support Talon to bring the Tamarack mine into production, as we strengthen our battery materials portfolio”.
The announcement came out of a burst of activity among car makers acquiring nickel supplies and other materials needed to produce batteries that will power the green-energy transition.
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